Rathbone Brothers Rathbone Brothers Plc : 1st Quarter Results
11 May 2017 - 4:00PM
UK Regulatory
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: 020 7399 0000 Tel: 020 3757 4984
email: shelly.patel@rathbones.com email: ed.gascoigne-pees@camarco.co.uk
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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