Interim Management Statement

RNS Number : 0482B

Rathbone Brothers PLC

20 October 2009

 



20 October 2009

Rathbone Brothers Plc

Organic growth up to 7.2% in the third quarter

This statement is an Interim Management Statement in accordance with the UK Listing Authority's Disclosure and Transparency Rules.  It covers the period from 1 July 2009 to 19 October 2009.

Chief executive, Andy Pomfret, commented:

"Rathbone Investment Management had a good third quarter, with annualised net organic growth in funds under management of 7.2% and increased fee and commission income from rising equity markets. We continue to consolidate our position as a leading provider of high-quality, personalised discretionary investment management services.

"Whilst the recent rally is welcome, economic indicators continue to present a mixed outlook for 2010. Rathbones' balance sheet remains strong, which positions it well to take advantage of growth opportunities."

Highlights: 

·     The underlying annualised rate of net organic growth of funds under management in Rathbone Investment Management was 7.2% for the quarter ended 30 September 2009 (2008: 3.8%) and 6.4% for the nine months ended 30 September 2009 (2008: 6.6%).

·     Total funds under management were £12.17 billion at 30 September 2009, up 16.3% from £10.46 billion at 31 December 2008, compared to an increase of 15.8% in the FTSE 100 Index and an increase of 10.0% in the FTSE APCIMS Balanced Index in the first nine months of 2009.

·     Net operating income in Rathbone Investment Management of £78.5 million was down 7.6% on the first nine months of 2008, compared to a fall of 18.6% in the average value of the FTSE 100 Index, using quarterly charging dates in 2009, compared to the same dates in 2008. The average FTSE APCIMS Balanced Index, measured on the same dates, fell 11.1%.

·     As anticipated, net interest and other income of £16.8 million in the first nine months of 2009 is 24.0% lower than the £22.1 million earned in the corresponding period in 2008, reflecting the reduction in yields on lower levels of treasury assets over the course of the year. Net interest income of £3.4 million in the third quarter of 2009 was 56.4% below the corresponding period in 2008. Client deposits at 30 September 2009 were £0.9 billion (30 September 2008: £1.2 billion).

·     Funds under management in Rathbone Unit Trust Management increased from £836 million at 30 June 2009 to £942 million at 30 September 2009, with the impact of rising markets offsetting lower net redemptions of £27 million in the third quarter. 

Net operating income (from continuing operations)

	3 months ended 30 September1				9 months ended 30 September1
	2009	2008	Change		2009	2008	Change
	£m	£m	%		£m	£m	%
Investment management
- Fees	15.1	13.1	15.3%		40.5	41.5	-2.4%
- Commissions	7.3	6.0	21.7%		21.2	21.4	-0.9%
- Interest & other	3.4	7.8	-56.4%		16.8	22.1	-24.0%
	25.8	26.9	-4.1%		78.5	85.0	-7.6%
Unit trusts	2.0	3.0	-33.3%		5.6	10.1	-44.6%
Trust and tax (continuing)	1.2	1.1	9.1%		3.6	3.8	-5.3%
Net operating income (continuing)	29.0	31.0	-6.5%		87.7	98.9	-11.3%
Average FTSE 100 Index on charging dates1	5134	4903	4.7%		4471	5492	-18.6%

 (1) 30 September is the third quarterly charging date for investment management clients. The other charging dates are 5 April, 30 June and 31 December. Unit trust income accrues on daily levels of funds under management.

Funds under management

	3 months ended 30 September			9 months ended 30 September
	2009	2008		2009	2008
	£m	£m		£m	£m
(i) Investment management
Opening FUM (1 July / 1 January)	9,685	10,488		9,429	11,226
Inflows	374	588		1,078	1,527
Organic new business	357	331		969	1,202
Acquired new business	17	257		109	325
Outflows	(182)	(231)		(519)	(645)
Market adjustment	1,356	(975)		1,245	(2,238)
Closing FUM (30 September)	11,233	9,870		11,233	9,870
Underlying annualised rate of net organic growth	7.2%	3.8%		6.4%	6.6%
(ii) Unit trusts
Opening FUM (1 July / 1 January)	836	1,504		1,029	1,894
Inflows	23	26		85	126
Outflows	(50)	(114)		(291)	(324)
Market adjustment	133	(193)		119	(473)
Closing FUM (30 September)	942	1,223		942	1,223
Total FUM (30 September)	12,175	11,093		12,175	11,093

The FTSE 100 index closed at 5282 on 19 October 2009, a rise of 2.9% since 30 September 2009, which has increased the value of funds under management. Investment management fee income in the fourth quarter is dependent upon the value of funds under management at 31 December 2009.

  For further information contact:

Rathbone Brothers Plc  Tel: [phone]   email: [e-mail] Mark Powell, Chairman Andy Pomfret, Chief Executive Paul Stockton, Finance Director Emily Morris, Marketing Director

Brunswick Tel: [phone] email: [e-mail] Helen Barnes/Claire Gore

Rathbone Brothers Plc 

Rathbone Brothers Plc is a leading independent provider of high-quality, personalised investment and wealth management services for private investors, charities and trustees. This includes discretionary investment management, tax and financial planning and unit trusts. 

Rathbones has nearly 700 staff in 10 UK locations and Jersey, and has its headquarters in New Bond Street, London.

www.rathbones.com

 

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