Interim Management Statement

RNS Number : 3307G

Rathbone Brothers PLC

11 May 2011

 



Rathbone Brothers Plc

Rathbones' funds under management exceed £16 billion

This statement, issued on the day of our Annual General Meeting, is an Interim Management Statement in accordance with the UK Listing Authority's Disclosure and Transparency Rules.  It covers the period from 1 January 2011 to 10 May 2011, and includes trading results for the three months ended 31 March 2011.

At the Annual General Meeting later today, Mark Powell, Chairman of Rathbone Brothers Plc, will say:

"Despite a particularly uncertain economic environment, Rathbones has achieved excellent growth in funds under management during the first quarter of this year.  Organic and acquired growth in our Investment Management business was an annualised 9.8%.  In the same period Rathbone Unit Trust Management returned to receiving net inflows of funds and total funds under management in Rathbones now exceed £16 billion. 

"This is my last Annual General Meeting as Chairman.  I am delighted that the Board has elected Mark Nicholls as my successor and confident that we will benefit from his strategic direction and the energy and expertise of our executive team led by Andy Pomfret.  Rathbones has a strong national reputation and under their leadership has a very positive and exciting future."

Highlights:

§ Total funds under management were £16.04 billion at the end of the first quarter*, up 2.6% from £15.63 billion at 31 December 2010.  This compares to an increase of 1.8% in the FTSE 100 Index and an increase of 0.6% in the FTSE APCIMS Balanced Index over the same period.

§ Net organic growth in Rathbone Investment Management of £314 million for the quarter represents an exceptional annualised growth rate of over 8% (2010: 3.2%). Acquired inflows into Rathbone Investment Management totalled £42 million in the first quarter, which when added to net organic growth represents a net annual growth rate of 9.8% (2010: 11.1%).

§ Net operating income in Rathbone Investment Management of £33.9 million (2010: £30.2 million) was up 12.3% in the first three months of 2011 year on year. Commission income was relatively high in the first quarter in the run up to the 2010/11 tax year end. The FTSE 100 Index was 6007 on our 5 April billing date, up 4.6% compared to 5745 on the same date in 2010.  The FTSE APCIMS Balanced Index, measured over the same period, increased by 4.0%.

§ Net interest and other income of £2.6 million in the first three months of 2011 is 3.7% lower than the £2.7 million earned in the corresponding period in 2010 reflecting the continuing low yields on treasury assets.  Cash in client portfolios at 31 March 2011 totalled £870 million (2010: £903 million).

§ Funds under management in Rathbone Unit Trust Management increased from £1.04 billion at 31 December 2010 to £1.06 billion at 31 March 2011 with net inflows of £17 million during the quarter. Net operating income in Rathbone Unit Trust Management of £2.0 million in the three months ended 31 March 2011 increased 5.3% from £1.9 million in 2010.

* 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 31 March for Unit Trusts.

London office relocation

Rathbones' preliminary results announcement on 16 February 2011 highlighted the need to finalise arrangements in respect of our London office. Rathbones has signed heads of terms in relation to 42,200 sq ft of office space in London W1 and expects to exchange contracts shortly.

Net operating income

	3 months ended 31 March
	2011	2010	Change
	£m	£m	%
Investment management
- Fees	18.9	15.8	19.6%
- Commissions	10.5	9.9	6.1%
- Interest & other	2.6	2.7	-3.7%
- Fees from advisory services1	1.9	1.8	5.6%
	33.9	30.2	12.3%
Unit trusts	2.0	1.9	5.3%
Net operating income	35.9	32.1	11.8%

(1) Including income from trust, tax and pension advisory services.

Funds under management

(i) Investment management	Period ended 5 April2
	2011	2010	Change
	£m	£m	%
Opening FUM (1 January)	14,586	12,158
Inflows	589	579
Organic new business	547	338
Acquired new business	42	241
Outflows	(233)	(242)
Market adjustment	42	616
Closing FUM (5 April)	14,984	13,111	14.3%
Underlying annualised rate of net organic growth	8.6%	3.2%
Total annualised net organic and acquired growth	9.8%	11.1%
FTSE 100 Index (5 April)	6007	5745	4.6%
FTSE APCIMS Balanced Index (5 April)	2997	2881	4.0%
(ii) Unit trusts	3 months ended 31 March
	2011	2010	Change
	£m	£m	%
Opening FUM (1 January)	1,043	935
Inflows	55	21
Outflows	(38)	(63)
Market adjustment	(5)	49
Closing FUM (31 March)	1,055	942	12.0%
Total funds under management	16,039	14,053	14.1%

(2) Key charging dates for investment management clients are 5 April, 30 June, 30 September and 31 December.  Unit trust income accrues on daily levels of funds under management.

For further information contact:

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

Quill PR Tel: [phone] Hugo Mortimer-Harvey

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 over 700 staff in 11 UK locations and Jersey, and has its headquarters in New Bond Street, London.

www.rathbones.com

 

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