TIDMRAT
RNS Number : 3132L
Rathbone Brothers PLC
12 January 2021
Rathbone Brothers Plc
Funds under management and administration update and notice of
results
Rathbone Brothers Plc ("Rathbones") announces a funds under
management and administration (FUMA) update for the year ended 31
December 2020.
- Total FUMA at 31 December 2020 were GBP54.7 billion, up 8.6%
from GBP50.4 billion at 31 December 2019, reflecting not only
strong market movements in the last quarter, but also continuing
net inflows and strong investment performance. The FTSE 100 Index
decreased by 14.3% at 31 December 2020 compared to the start of the
year, while the MSCI PIMFA Private Investor Balanced Index over the
same period was largely unchanged.
- GBP44.9 billion in the Investment Management business was up
4.5% from GBP43.0 billion at 31 December 2019, with investment
performance now outperforming the MSCI PIMFA Private Investor
Balanced Index over 1,3- and 5-year performance periods.
- GBP9.8 billion in Rathbones Unit Trust Management (RUTM) was
up 32.0% from GBP7.4 billion at 31 December 2019, reflecting very
strong net inflows.
- Total net inflows across the group in 2020 were GBP2.1 billion
(2019: GBP0.6 billion), representing 4.2% of opening FUMA (2019:
1.3%).
- Gross organic inflows in Investment Management were consistent
at GBP3.3 billion in 2020 compared to GBP3.3 billion in the prior
year.
- Acquired inflows of GBP0.6 billion in Investment Management
largely reflect the transfer of the court of protection assets from
Barclays Wealth (GBP0.4 billion).
- Investment Management outflows for the year totalled GBP3.3
billion (2019: GBP3.9 billion), 14.3% lower than 2019. The last
quarter of 2020 was impacted by the withdrawal of a low margin
mandate as well as the withdrawal of non-fee-paying and execution
only business, amounting to GBP143 million in total.
- Full year net inflows in RUTM were GBP1,498 million (2019:
GBP943 million). This represents 20.1% of opening funds under
management (2019: 16.7%). RUTM was ranked in 7th position for
overall net retail sales during the third quarter of 2020 (source:
Pridham Report), maintaining its top 10 position for 6 consecutive
quarters.
Outlook
Although we continue to expect market volatility during 2021 as
well as continuing low interest rates, we remain focused on
enhancing our services to clients and delivering growth. We will
continue to balance this investment with prevailing market
conditions, maintaining strict cost discipline and identifying
inorganic opportunities that are a strong cultural fit.
Notice of results
Our preliminary statement of annual results for the year ended
31 December 2020 will be published on Thursday, 4 March 2021. A
virtual presentation to analysts will be held on the same day.
Funds under management and administration (FUMA)
3 months ended Year ended
(i) Investment Management 31 December 31 December
2020 2019 2020 2019
GBPm GBPm GBPm GBPm
Opening FUMA (1 October / 1 January) 41,763 42,422 42,965 38,456
Total inflows 915 820 3,915 3,510
-------------------------------------- ------- -------- -------- --------
Organic new business 849 794 3,329 3,278
Acquired new business(1) 66 26 586 232
-------------------------------------- ------- -------- -------- --------
Outflows (965) (1,147) (3,308) (3,861)
Market effect and investment
performance 3,199 870 1,340 4,860
------- -------- -------- --------
Closing FUMA (31 December)(2) 44,912 42,965 44,912 42,965
------- -------- -------- --------
Annualised rate of net organic
growth (1.1%) (3.3%) 0.1% (1.5%)
Total annualised net organic
and acquired growth (0.5%) (3.1%) 1.4% (0.9%)
(ii) Rathbones Unit Trust Management
(RUTM)
Opening FUM (1 October / 1 January) 8,730 7,028 7,438 5,643
Inflows 1,024 642 3,574 2,298
Outflows (474) (347) (2,076) (1,355)
Market effect and investment
performance 540 115 884 852
------- -------- -------- --------
Closing FUM (31 December) 9,820 7,438 9,820 7,438
------- -------- -------- --------
Annualised rate of net organic
growth 25.2% 16.8% 20.1% 16.7%
Total FUMA (31 December) 54,731 50,403 54,731 50,403
------- -------- -------- --------
Total net flows
Investment Management (50) (327) 607 (351)
RUTM(3) 550 295 1,498 943
------- -------- -------- --------
Total 500 (32) 2,105 592
------- -------- -------- --------
Annualised rate of total net
growth 4.0% (0.3%) 4.2% 1.3%
1 Acquired new business is defined as corporate or team
acquisitions, and new business from investment managers who are on
an earn-out arrangement.
2 Includes Greenbank funds of GBP1.9 billion (31 December 2019:
GBP1.6 billion) and funds managed with a charitable mandate of
GBP6.5 billion (31 December 2019: GBP6.1 billion).
3 Full year 2020 total net inflows into Rathbones multi-asset
solutions were GBP528 million (2019: GBP302 million).
Investment Management: Service level breakdown of FUMA
31 30 September 31 December Change Change
December 2020 2019 3 12 months
2020 GBPm GBPm months %
GBPm %
--------------------------------- ---------- ------------- ------------ -------- -----------
Direct 33,678 30,812 31,013 9.3 8.6
Financial Adviser linked 9,347 8,730 8,735 7.1 7.0
--------------------------------- ---------- ------------- ------------ -------- -----------
Total Discretionary 43,025 39,542 39,748 8.8 8.2
Non-Discretionary Investment
Management 1,392 1,805 2,550 (22.9) (45.4)
Execution Only 2,658 2,381 2,412 11.6 10.2
--------------------------------- ---------- ------------- ------------ -------- -----------
Gross Investment Management
FUMA 47,075 43,728 44,710 7.7 5.3
Discretionary wrapped funds(4) (2,163) (1,965) (1,745) 10.1 24.0
--------------------------------- ---------- ------------- ------------ -------- -----------
Total Investment Management
FUMA 44,912 41,763 42,965 7.5 4.5
--------------------------------- ---------- ------------- ------------ -------- -----------
Proportion of non-discretionary
investment management to
total gross FUMA 3.0% 4.1% 5.7%
4 Holdings of our RUTM Unit Trusts in Rathbone Investment
Management portfolios and funds where the management of the assets
is undertaken by Rathbone Investment Management teams.
12 January 2021
For further information contact:
Rathbone Brothers Plc
Paul Stockton, Chief Executive
Jennifer Mathias, Group Finance Director
Dominic Lagan, Head of Investor Relations
Tel: 020 7399 0145
email: dominic.lagan@rathbones.com
Camarco
Ed Gascoigne-Pees
Julia Tilley
Tel: 020 3757 4984
email: ed.gascoigne-pees@camarco.co.uk
Rathbone Brothers Plc
Rathbones provides individual investment and wealth 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
responsibly has been with us from the beginning and continues to
lead us forward. Our ambition is to be recognised as the UK's most
responsible wealth manager.
Rathbones has over 1,500 staff in 15 UK locations and Jersey;
its headquarters is 8 Finsbury Circus, London.
www. rathbones.com
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