REG - Rathbones Group PLC - FUMA update and notice of results
16/01/2025 07:00
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RNS Number : 4843T Rathbones Group PLC 16 January 2025
Rathbones Group Plc
fourth QUARTER UPDATE
Funds under management and administration (FUMA) update for the year ended 31
December 2024 and notice of results
- Funds under management and administration (FUMA) totalled £109.2
billion at 31 December 2024 (30 September 2024: £108.8 billion, 31 December
2023: £105.3 billion).
- £93.4 billion in the Wealth Management segment (£99.3 billion
prior to the elimination of Wealth Management FUMA invested in the Asset
Management segment of £5.9 billion).
- £15.8 billion in the Asset Management segment.
- The group posted record gross inflows of £3.2 billion in Q4 (Q3
2024: £2.8 billion) supported by particularly strong discretionary inflows,
offset by outflows of £3.4 billion (Q3 2024: £3.4 billion) which were partly
elevated by a short-term increase in withdrawals of funds by existing clients
around the UK Autumn Budget.
- Total net flows in Rathbones Investment Management discretionary
& managed propositions were stronger at £0.4 billion (Q3 2024: £0.1
billion) reflecting extensive client engagement in a turbulent quarter. Net
flows represent an annualised growth rate of 2.9% for the quarter and 2.0% for
the year ended 31 Dec 2024 (2023: 1.5%).
- Outflows relating to previous Investec Wealth & Investment
(IW&I) investment manager departures reduced materially in Q4 to their
lowest level for the year. Investment manager turnover since the announcement
of the combination remains low. Gross inflows however continued to be impacted
by investment teams committing time to complete the final stages of the client
consent process. Net outflows in IW&I were £0.4 billion in the final
quarter (Q3 2024: £0.3 billion).
- Flows in single strategy funds continue to reflect the challenging
market environment for active asset managers. However, net outflows reduced to
£0.1 billion in the final quarter (Q3 2024: outflows of £0.2 billion).
- Execution only net outflows equated to £0.1 billion in the
quarter, owing largely to the closure of a large, low margin account.
Outlook
The integration of IW&I continues to proceed well, and we have made
substantial progress in the integration process, in line with our
expectations. The client consent process is well-progressed with very
encouraging responses, and we continue to anticipate completing the client
migration onto a single operating platform during the first half of 2025. We
remain confident in the delivery of our synergy targets, including our 2025
target of at least 70% of total synergies being achieved this year on a
cumulative run-rate basis.
Our combined business offers the strength and resilience to manage through
challenging market conditions, providing a personalised service that ensures
clients benefit from disciplined, long-term investment strategies and advice
tailored to their specific financial goals.
Our priorities for 2025 include completing the migration of IW&I clients
whilst adding marketing and distribution capability to support organic growth
opportunities, both directly and in tandem with third-party IFAs.
Notice of results
Our preliminary statement of annual results for the year ended 31 December
2024 will be published on Wednesday, 26 February 2025. A presentation to
analysts and investors will be held at 10am on the same day at 30 Gresham
Street, London.
Funds under management and administration
(I) Segment fuma
12 months ended 31 December 2024 Wealth Asset Management Intra-group holdings Group FUMA
(£m)
Management (£m) (£m)
(£m)
Opening FUMA 96,118 13,770 (4,548) 105,340
Gross Inflows 9,656 4,387 (1,991) 12,052
Gross Outflows (10,729) (3,781) 1,040 (13,470)
Net Flows (1,073) 606 (951) (1,418)
Transfers (84) 84 - -
Market & Investment Performance 4,348 1,291 (397) 5,242
Closing FUMA 99,309 15,751 (5,896) 109,164
(Ii) Breakdown of FUMA and flows by service level
12 months ended 31 December 2024 Opening FUMA Gross Inflows Gross Outflows Net Flows Transfers(1) SHL Migrated Assets Market & Investment Performance (£m) Closing FUMA Ann Net Growth(2)
(£m)
(£m)
(£m)
(£m)
(%)
(£m) (£m) (£m)
Rathbones Investment Management 48,759 5,239 (4,405) 834 16 1,275 2,016 52,900 1.7
Bespoke portfolios 45,004 4,667 (4,023) 644 (422) 828 1,747 47,801 1.4
Managed via in-house funds 3,755 572 (382) 190 438 447 269 5,099 5.1
Multi-asset funds(3) 2,545 1,042 (846) 196 84 - 268 3,093 7.7
Rathbones discretionary & managed 51,304 6,281 (5,251) 1,030 100 1,275 2,284 55,993 2.0
Non-discretionary service 752 20 (41) (21) (68) - 3 666 (2.8)
IW&I 42,267 3,964 (5,026) (1,062) (256) - 2,024 42,973 (2.5)
Saunderson House 1,590 68 (494) (426) - (1,278) 114 - (26.8)
Single-strategy funds 6,677 1,354 (1,895) (541) - - 626 6,762 (8.1)
Execution only 2,750 365 (763) (398) 224 3 191 2,770 (14.5)
Total group 105,340 12,052 (13,470) (1,418) - - 5,242 109,164 (1.3)
Q4 ended 31 December 2024 Opening FUMA Gross Inflows Gross Outflows Net Flows Transfers(1) SHL Migrated Assets Market & Investment Performance (£m) Closing FUMA Ann Net Growth(2)
(£m)
(£m)
(£m)
(£m)
(%)
(£m) (£m) (£m)
Rathbones Investment Management 52,355 1,568 (1,187) 381 (20) - 184 52,900 2.9
Bespoke portfolios 47,441 1,396 (1,077) 319 (113) - 154 47,801 2.7
Managed via in-house funds 4,914 172 (110) 62 93 - 30 5,099 5.0
Multi-asset funds(3) 3,058 237 (223) 14 - - 21 3,093 1.8
Rathbones discretionary & managed 55,413 1,805 (1,410) 395 (20) - 205 55,993 2.9
Non-discretionary service 683 2 (6) (4) (19) - 6 666 (2.3)
IW&I 43,043 913 (1,322) (409) (6) - 345 42,973 (3.8)
Saunderson House - - - - - - - - -
Single-strategy funds 6,734 323 (421) (98) - - 126 6,762 (5.8)
Execution only 2,932 119 (267) (148) 45 - (59) 2,770 (20.2)
Total group 108,805 3,162 (3,426) (264) - - 623 109,164 (1.0)
(iiI) Breakdown of WEALTH Management FUMA and flows by channel
12 months ended 31 December 2024 Opening FUMA Net Flows Transfers(1) SHL Migrated Assets Market & Investment Performance (£m) Closing FUMA Ann Net Growth(2)
(£m)
(£m)
(£m)
(£m)
(%)
(£m)
Gross Inflows Gross Outflows
(£m) (£m)
Total direct 34,411 3,336 (3,169) 167 (185) 1 1,539 35,933 0.5
Total financial adviser linked 14,348 1,903 (1,236) 667 201 1,274 477 16,967 4.6
Total discretionary service 48,759 5,239 (4,405) 834 16 1,275 2,016 52,900 1.7
Execution only 2,750 365 (763) (398) 224 3 191 2,770 (14.5)
Non-discretionary service 752 20 (41) (21) (68) - 3 666 (2.8)
Total wealth management 52,261 5,624 (5,209) 415 172 1,278 2,210 56,336 0.8
IW&I 42,267 3,964 (5,026) (1,062) (256) - 2,024 42,973 (2.5)
Total wealth management for enlarged group 94,528 9,588 (10,235) (647) (84) 1,278 4,234 99,309 (0.7)
Q4 ended 31 December 2024 Opening FUMA Net Flows Transfers(1) SHL Migrated Assets Market & Investment Performance (£m) Closing FUMA Ann Net Growth(2)
(£m)
(£m)
(£m)
(£m)
(%)
(£m)
Gross Inflows Gross Outflows
(£m) (£m)
Total direct 35,535 1,051 (837) 214 (63) - 247 35,933 2.4
Total financial adviser linked 16,820 517 (350) 167 43 - (63) 16,967 4.0
Total discretionary service 52,355 1,568 (1,187) 381 (20) - 184 52,900 2.9
Execution only 2,932 119 (267) (148) 45 - (59) 2,770 (20.2)
Non-discretionary service 683 2 (6) (4) (19) - 6 666 (2.3)
Total wealth management 55,970 1,689 (1,460) 229 6 - 131 56,336 1.6
IW&I 43,043 913 (1,322) (409) (6) - 345 42,973 (3.8)
Total wealth management for enlarged group 99,013 2,602 (2,782) (180) - - 476 99,309 (0.7)
(iV) Total Group FUMA
12 months ended 31 December 2024 Opening FUMA Gross Inflows Gross Outflows Net Flows Transfers(1) SHL Migrated Assets Market & Investment Performance (£m) Closing FUMA Ann Net Growth(2)
(£m)
(£m)
(£m)
(£m)
(%)
(£m) (£m) (£m)
Rathbones Investment Management 52,261 5,624 (5,209) 415 172 1,278 2,210 56,336 0.8
Rathbones Asset Management 13,770 4,387 (3,781) 606 84 - 1,291 15,751 4.4
IW&I 42,267 3,964 (5,026) (1,062) (256) - 2,024 42,973 (2.5)
Saunderson House 1,590 68 (494) (426) - (1,278) 114 - (26.8)
Total 109,888 14,043 (14,510) (467) - - 5,639 115,060 (0.4)
Group eliminations(4) (4,548) (1,991) 1,040 (951) - - (397) (5,896) 20.9
Total 105,340 12,052 (13,470) (1,418) - - 5,242 109,164 (1.3)
1. Transfers represent client FUMA which has transferred from one service to
another and other intra-group movements. These are excluded from net inflows.
2. Annualised net growth calculated as net flows/opening FUMA.
3. Net inflows into multi-asset funds include direct flows and flows into
managed solutions via in-house funds.
4. Group eliminations represent RAM funds that are held within portfolios
managed by RIM (£5.7 billion) and IW&I (£0.2 billion) teams.
Consequently, after excluding the RAM funds, the FUMA of each entity is £50.6
billion in RIM and £42.7 billion within IW&I.
16 January 2025
For further information contact:
Rathbones Group Plc
Paul Stockton, Group Chief Executive Officer
Iain Hooley, Group Chief Financial Officer
Shelly Patel, Head of Investor Relations
Tel: 020 7399 0071
Email: shelly.patel@rathbones.com (mailto:shelly.patel@rathbones.com)
Camarco
Ed Gascoigne-Pees
Tel: 020 3757 4980
Email: ed.gascoigne-pees@camarco.co.uk
(mailto:ed.gascoigne-pees@camarco.co.uk)
Rathbones Group Plc
Rathbones provides wealth and asset management services for private clients,
charities, trustees and professional partners. We have been trusted for
generations to manage and preserve our clients' wealth. Our tradition of
investing and acting for everyone's tomorrow has been with us from the
beginning and continues to lead us forward.
Rathbones headquarters is 30 Gresham Street, London, EC2V 7PG.
www.rathbones.com
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