Rathbone Brothers Rathbone Brothers Plc : 1st Quarter Results

 
TIDMRAT 
 
 
   Rathbone Brothers Plc 
 
   Funds under management up 4.7% to GBP35.8 billion 
 
 
 
 
   Rathbone Brothers Plc ("Rathbones") announces a trading update for the 
period from 1 January 2017 to 31 March 2017. 
 
   At the Annual General Meeting later today, Mark Nicholls, Chairman of 
Rathbones, will say: 
 
   "Strong investment markets and continuing growth helped our funds under 
management reach GBP35.8 billion during the first quarter of 2017, up 
4.7% from 31 December 2016, and 22.2% from a year ago. 
 
   "Our investment businesses continue to perform well and activity is high 
across the group as we continue to progress towards our strategic goals. 
We continue to seek further growth opportunities, but remain mindful of 
continuing political and economic uncertainties." 
 
   Highlights: 
 
 
   -- Total funds under management were GBP35.8 billion at the end of the first 
      quarter*, up 4.7% from GBP34.2 billion at 31 December 2016 and 22.2% from 
      GBP29.3 billion a year ago. In the first quarter, the FTSE 100 Index 
      increased 2.6% and the MSCI WMA Private Investor Balanced Index increased 
      3.1%. 
 
   -- Total net growth of funds under management in Investment Management was 
      GBP318 million, representing a total net annualised growth rate of 4.2% 
      (2016: 3.6%). This comprises net organic growth of GBP248 million and 
      acquired inflows of GBP70 million for the quarter. Net organic growth in 
      the first quarter represents an annualised growth rate of 3.3% compared 
      to 1.5% in the first three months of 2016. 
 
   -- Funds under management in Unit Trusts increased 10.0% to GBP4.4 billion 
      at 31 March 2017 from GBP4.0 billion at 31 December 2016, with net 
      inflows of GBP109 million during the quarter. Net operating income of 
      GBP7.3 million (2016: GBP5.4 million) was up 35.2% year on year in the 
      first three months of 2017. 
 
   -- Net operating income in Investment Management of GBP63.3 million (2016: 
      GBP53.5 million) was up 18.3% year on year in the first three months of 
      2017. The FTSE 100 Index was 7332 on our 5 April billing date, up 20.4% 
      compared to 6091 on the same date in 2016. The MSCI WMA Private Investor 
      Balanced Index, measured over the same period, increased by 17.2%. 
 
   -- Fee income of GBP46.0 million (2016: GBP37.7 million) rose 22.0% year on 
      year reflecting positive markets and growth in organic and acquired new 
      business over the period. 
 
   -- Commission income of GBP11.0 million (2016: GBP9.8 million) was up 12.2% 
      year on year, reflecting higher trading volumes particularly towards the 
      end of the tax year. 
 
   -- Net interest income of GBP2.8 million in the first three months of 2017 
      was inline with the GBP2.8 million earned in the corresponding period in 
      2016. Cash in client portfolios increased to GBP2.1 billion in the first 
      quarter of 2017 (2016 average: GBP1.6 billion). Loans and advances to 
      customers were GBP120.3 million at 31 March 2017, up 8.4% on the GBP111.0 
      million at 31 December 2016. 
 
   -- Fees from advisory services and other income grew 9.4% to GBP3.5 million 
      (2016: GBP3.2 million), largely reflecting growth in the Vision group 
      since its acquisition in 2015. 
 
 
   * Funds under management at the end of the first quarter are measured at 
5 April for Investment Management (to coincide with the first key 
charging date for Investment Management private clients) and at 31 March 
for Unit Trusts. 
 
 
 
   Net operating income 
 
 
 
 
                                                    3 months ended 31 March 
                                                   2017     2016     Change 
Investment Management                              GBPm     GBPm        % 
- Fees                                               46.0     37.7      22.0% 
- Commissions                                        11.0      9.8      12.2% 
- Net interest income                                 2.8      2.8       0.0% 
- Fees from advisory services(1) & other income       3.5      3.2       9.4% 
                                                     63.3     53.5      18.3% 
Unit Trusts                                           7.3      5.4      35.2% 
Net operating income                                 70.6     58.9      19.9% 
 
 
   (1)   Including income from trust, tax and advisory services. 
 
   Funds under management 
 
 
 
 
(i) Investment Management                            Period ended 5 April(2) 
                                                     2017      2016    Change 
                                                     GBPm      GBPm       % 
Opening FUM (1 January)                              30,184    26,126 
Inflows                                                 895       616 
 Organic new business                                   825       482 
 Acquired new business                                   70       134 
Outflows                                              (577)     (382) 
Market effect and investment performance                960     (210) 
Closing FUM (5 April)                                31,462    26,150    20.3% 
 
Underlying annualised rate of net organic growth       3.3%      1.5% 
Total annualised net organic and acquired growth       4.2%      3.6% 
 
FTSE 100 Index (5 April)                               7332      6091    20.4% 
MSCI WMA Private Investor Balanced Index (5 
 April)                                                1538      1312    17.2% 
 
(ii) Unit Trusts                                     3 months ended 31 March 
                                                       2017      2016   Change 
                                                       GBPm      GBPm        % 
Opening FUM (1 January)                               4,051     3,073 
Inflows                                                 355       263 
Outflows                                              (246)     (133) 
Market effect and investment performance                201      (35) 
Closing FUM (31 March)                                4,361     3,168    37.7% 
 
Total funds under management(3)                      35,823    29,318    22.2% 
 
   (2)   Key charging dates for investment management clients are 5 April, 
30 June, 30 September and 31 December.  Unit trusts income accrues on 
daily levels of funds under management. 
 
   (3)   Includes GBP967 million (2016: GBP877 million) of funds under 
execution only mandates. 
 
   The FTSE 100 Index closed at 7385 on 10 May 2017, a rise of 0.7% since 5 
April 2017, which has increased the value of funds under management. 
Investment management fee income in the first quarter is dependent upon 
the value of funds under management at 5 April 2017. 
 
   Rathbone Brothers Plc's interim results for the six months to 30 June 
2017 will be announced on 25 July 2017. 
 
   11 May 2017 
 
   For further information contact: 
 
 
 
 
Rathbone Brothers Plc                      Camarco 
 Tel: [phone]                         Tel: [phone] 
 email: [e-mail]          email: [e-mail] 
 Philip Howell, Chief Executive             Ed Gascoigne-Pees 
 Paul Stockton, Finance Director 
 Shelly Patel, Investor Relations Manager 
 
 
   Rathbone Brothers Plc 
 
   Rathbone Brothers Plc ("Rathbones"), through its subsidiaries, is a 
leading provider of high-quality, personalised investment and wealth 
management services for private clients, charities and trustees. Our 
services include discretionary investment management, unit trusts, 
banking and loan services, financial planning, unitised portfolio 
services, and UK trust, legal, estate and tax advice. 
 
   Rathbones has over 1,100 staff in 16 UK locations and Jersey; its 
headquarters is 8 Finsbury Circus, London. 
 
   rathbones.com http://www.rathbones.com 
 
   This announcement is distributed by Nasdaq Corporate Solutions on behalf 
of Nasdaq Corporate Solutions clients. 
 
   The issuer of this announcement warrants that they are solely 
responsible for the content, accuracy and originality of the information 
contained therein. 
 
   Source: Rathbone Brothers Plc via Globenewswire 
 
 
  http://www.rathbones.com/ 
 

(END) Dow Jones Newswires

May 11, 2017 02:00 ET (06:00 GMT)

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