Trading Statement

RNS Number : 9899Y

Rathbone Brothers PLC

06 January 2011

 



Rathbone Brothers Plc

Trading Update and Notice of Results

Trading Update

Rathbone Brothers Plc ("Rathbones"), a leading provider of discretionary fund management and wealth management services for private investors, charities and trustees, announces that:

·    Total funds under management as at 31 December 2010 were £15.63 billion, up 19.3% from £13.10 billion as at 31 December 2009.

·    Funds managed by Rathbone Investment Management Limited were £14.59 billion as at 31 December 2010, up 20.0% from £12.16 billion as at 31 December 2009. This compares to a 9.0% increase in the FTSE 100 index and a 9.3% increase in the FTSE APCIMS Balanced Index over the same period.

·    Acquired inflows of funds under management into Rathbone Investment Management Limited totalled £0.60 billion in the year (2009: £0.55 billion) which when added to net organic growth represents a net annual growth rate of 10.2% (2009: 12.5%).

·    The underlying annualised rate of net organic growth in funds under management in Rathbone Investment Management Limited was 5.3% in the year ended 31 December 2010 (2009: 6.7%).

·    The FTSE 100 Index ended 2010 at 5900, making the average index 5528 on quarter end billing dates (2009: 4706).

·    Cash held in client portfolios was £0.8 billion as at 31 December 2010 (2009: £0.8 billion).

·    Funds managed by Rathbone Unit Trust Management Limited rose to £1.04 billion as at 31 December 2010 from £0.94 billion as at 31 December 2009, an increase of 10.6%. Total net fund inflows were £18.3 million in the fourth quarter of 2010.

Rathbones has been made aware of industry discussions with the Financial Services Compensation Scheme (FSCS) in respect of a proposed interim levy on the Investment Fund Management sub-class following the failure of Keydata Investment Services Limited. Although a levy would adversely impact all retail investment management firms, Rathbones has had no direct communication with the FSCS so will, if necessary, make an announcement as to the amount and timing of a charge should it arise.

Outlook

2010 ended on a more buoyant note with the UK equity market reaching a year's high.  UK equities continue to attract support in view of the strength of the balance sheets of many major companies and their earnings outlook as well as the favourable yield comparison with low yielding government and corporate bonds.  Provided that the deficit reduction measures now being implemented in the UK and elsewhere do not precipitate a "double-dip" recession, Rathbones can look forward with cautious optimism.

Rathbones continues to consolidate its position as a leading provider of high-quality, personalised discretionary investment management services and remains well placed to take advantage of growth opportunities.

Notice of Results

Rathbones will issue its preliminary statement of annual results for the year ended 31 December 2010 on Thursday 17 February 2011. Subject to developments on the FSCS matter outlined above, results are anticipated to be in line with market expectations.

ENDS

6 January 2011

For further information contact:

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

 

END

 

 

TSTLLFITLTIEIIL