FUMA update and notice of results

Rathbones Group PLC
17 January 2024
 

 

 


Rathbones Group Plc

fourth quarter trading update

funds under management and administration ("FUMA") update for the year ended 31 december 2023 and notice of results.

- Total FUMA, including Investec Wealth & Investment (IW&I), reached £105.3 billion at 31 December 2023 (30 September 2023: £100.7 billion, 31 December 2022: £60.2 billion) consisting of:

-   £48.0 billion in Rathbone Investment Management (RIM) (31 December 2022: £45.1 billion).

-   £42.2 billion in IW&I (31 December 2022: £nil).  

-   £1.3 billion in Saunderson House (31 December 2022: £4.1 billion) as FUMA in that entity continues to migrate as planned to Rathbones investment propositions.

-   £13.8 billion in Rathbone Asset Management (RAM, formerly Rathbone Unit Trust Management) (31 December 2022: £11.0 billion).  

- Total net flows in wealth management were flat in the quarter as positive inflows in Rathbones offset anticipated outflows in IW&I:

-   Rathbones discretionary and managed net inflows for the quarter totalled £0.4 billion.  

-   Net outflows in IW&I were £0.3 billion, reflecting the anticipated impact of investment manager departures that predominantly occurred prior to the announcement of the combination with Rathbones. Since then, investment manager turnover has been low, engagement with colleagues at IW&I has been very positive, and integration work remains on track.  

- Net inflows into our multi-asset fund range, comprising both direct and managed solutions via in-house funds, totalled £0.6 billion in the quarter. Net outflows in RAM single strategy funds of £0.1 billion were resilient against the wider asset management industry backdrop.

- Market and investment performance added £4.9 billion to FUMA in the quarter. 

 

Outlook

Economic uncertainties are expected to persist in 2024, however, Rathbones will continue to remain focused on client engagement as we deliver toward our key strategic objectives.

Until the IW&I business is fully integrated, the existing client billing dates of each of the investment management businesses will be maintained. The principal charging dates for Rathbone Investment Management clients are 5 April, 30 June, 30 September and 31 December. The principal charging dates in 2024 for IW&I are 29 February, 31 May, 31 August and 30 November.

Rathbones begins 2024 as an enlarged group that remains well-positioned to take advantage of both benefits of scale and future growth opportunities.

 

Notice of results

Our preliminary statement of annual results for the year ended 31 December 2023 will be published on
Wednesday, 6 March 2024. A presentation to analysts will be held on the same day.

 

 

 

 

 

 

 

 

 

 

Funds under management and administration

(i) Breakdown of FUMA and flows by service level

Q4 ended 31 December 2023

Opening FUMA
(£m)

 

 

 

 

Gross Inflows

(£m)

 

 

 

 

Gross Outflows

(£m)

Net Flows
(£m)

Transfers1
(£m)

SHL Migrated Assets

(£m)

Market & Investment Performance (£m)

Closing FUMA
(£m)

Ann Net Growth2
(%)

Rathbones Investment Management

45,705

1,158

(880)

278

59

626

2,091

48,759

2.4

Bespoke portfolios

42,630

1,050

(779)

271

(43)

279

1,867

45,004

2.5

Multi-asset funds3

2,345

280

(166)

114

-

-

86

2,545

19.4

Rathbones discretionary & managed

48,050

1,438

(1,046)

392

59

626

2,177

51,304

3.3

Non-discretionary service

732

11

(9)

2

(25)

-

43

752

1.1

Investec W&I (from 1 October)4

40,781

796

(1,123)

(327)

(115)

 -

1,928

42,267

(3.2)

Saunderson House5

2,211

15

(113)

(98)

-

(631)

108

1,590

(17.7)

Total wealth management

91,774

2,260

(2,291)

(31)

(81)

(5)

4,256

95,913

(0.1)

Single-strategy funds

6,313

299

(412)

(113)

-

-

477

6,677

(7.2)

Execution only & banking

2,594

86

(164)

(78)

81

5

148

2,750

(12.0)

Total group4

100,681

2,645

(2,867)

(222)

-

-

4,881

105,340

(0.9)

 

12 months ended 31 December 2023

Opening FUMA
(£m)

 

 

 

 

Gross Inflows

(£m)

 

 

 

 

Gross Outflows

(£m)

Net Flows
(£m)

Transfers1
(£m)

SHL Migrated Assets

(£m)

Market & Investment Performance (£m)

Closing FUMA
(£m)

Ann Net Growth2
(%)

Rathbones Investment Management

44,322

4,216

(3,824)

392

(214)

2,389

1,870

48,759

0.9

Bespoke portfolios

42,894

3,804

(3,556)

248

(896)

1,107

1,651

45,004

0.6

Multi-asset funds3

2,159

896

(597)

299

-

-

87

2,545

13.8

Rathbones discretionary & managed

46,481

5,112

(4,421)

691

(214)

2,389

1,957

51,304

1.5

Non-discretionary service

757

40

(62)

(22)

(38)

-

55

752

(2.9)

Investec W&I (from 1 October)4

40,781

796

(1,123)

(327)

(115)

 -

1,928

42,267


Saunderson House5

4,117

119

(510)

(391)

-

(2,396)

260

1,590

(9.5)

Total wealth management

92,136

6,067

(6,116)

(49)

(367)

(7)

4,200

95,913

(0.1)

Single-strategy funds

6,474

1,275

(1,838)

(563)

-

-

766

6,677

(8.7)

Execution only & banking

2,404

327

(541)

(214)

367

7

186

2,750

(8.7)

Total group4

101,014

7,669

(8,495)

(826)

-

-

5,152

105,340

(0.8)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(ii) Breakdown of Investment Management FUMA and flows by channel

 

Q4 ended 31 December 2023

Opening FUMA
(£m)

 

 

Gross Inflows

(£m)

 

 

Gross Outflows

(£m)

Net Flows
(£m)

Transfers1  
(£m)

SHL Migrated Assets

(£m)

Market & Investment Performance (£m)

Closing FUMA
(£m)

Ann Net Growth2
(%)

Total direct

32,948

747

(615)

132

(21)

-

1,352

34,411

1.6

Total financial adviser linked

12,757

411

(265)

146

80

626

739

14,348

4.6

Total discretionary service

45,705

1,158

(880)

278

59

626

2,091

48,759

2.4

Execution only & banking

2,594

86

(164)

(78)

81

5

148

2,750

(12.0)

Non-discretionary service

732

11

(9)

2

(25)

-

43

752

1.1

Total Investment Management

49,031

1,255

(1,053)

202

115

631

2,282

52,261

1.6

Investec W&I (from 1 October)4

40,781

796

(1,123)

(327)

(115)

 -

1,928

42,267

(3.2)

Total Investment Management for enlarged group4

89,812

2,051

(2,176)

(125)

-

631

4,210

94,528

(0.6)

 

12 months ended 31 December 2023

Opening FUMA
(£m)

 

 

Gross Inflows

(£m)

 

 

Gross Outflows

(£m)

Net Flows
(£m)

Transfers1
(£m)

SHL Migrated Assets

(£m)

Market & Investment Performance (£m)

Closing FUMA
(£m)

Ann Net Growth2
(%)

Total direct

33,639

2,709

(2,848)

(139)

(247)

-

1,158

34,411

(0.4)

Total financial adviser linked

10,683

1,507

(976)

531

33

2,389

712

14,348

5.0

Total discretionary service

44,322

4,216

(3,824)

392

(214)

2,389

1,870

48,759

0.9

Execution only & banking

2,404

327

(541)

(214)

367

7

186

2,750

(8.9)

Non-discretionary service

757

40

(62)

(22)

(38)

- 

55

752

(2.9)

Total Investment Management

47,483

4,583

(4,427)

156

115

2,396

2,111

52,261

(0.3)

Investec W&I (from 1 October)4

40,781

796

(1,123)

(327)

(115)

 -

    1,928

42,267


Total Investment Management for enlarged group4

88,264

5,379

(5,550)

(171)

-

2,396

4,039

94,528

(0.2)

 

 

1.  Transfers represent client FUMA which has transferred from one service to another and other intra-group movements.

2.  Annualised net growth in flows calculated as net flows/opening FUMA.

3.  Net inflows into multi-asset funds include direct flows and flows into managed solutions via in-house funds.

4.  Opening FUMA for Investec W&I is from 1 October 2023.

5.  Total funds under advice by Saunderson House, including those clients transferred to fellow group companies totalled £4.0 billion at 31 December 2023 (31 December 2022: £4.1 billion).

 

 

(iii) Total Group FUMA

At 31 December


At 30 September

2023

2022

Change


2023

Change

£m

£m

%


£m

%

Rathbones Investment Management Gross FUMA

52,261

47,483

10.1


49,031

6.6

Of which: invested in RAM discretionary wrapped funds6

(4,290)

(2,372)

80.9


(3,631)

18.1

Rathbones Asset Management

13,770

11,005

25.1


12,547

9.7

Saunderson House

1,590

4,117

(61.4)


2,211

(28.1)

Of which: invested in RAM discretionary wrapped funds7

(243)

-

-


(246)

(1.2)

Total FUMA excluding Investec W&I

63,088

60,233

4.7


59,912

5.3

Investec W&I

42,267

-

-


40,781

3.6

Of which: invested in RAM discretionary wrapped funds8

(15)

-

-


(12)

25.0

Total Group FUMA for enlarged group

105,340

-

-


100,681

4.6

 

6.  Discretionary wrapped funds represent RAM funds which are held within portfolios managed by RIM. 

7.  Discretionary wrapped funds represent RAM funds which are held within portfolios managed by Saunderson House teams.

8.  Discretionary wrapped funds represent RAM funds which are held within portfolios managed by Investec W&I teams.

 

17 January 2024

 

For further information contact:

Rathbones Group Plc

Paul Stockton, Group Chief Executive Officer
Iain Hooley, Group Chief Financial Officer*
Shelly Patel, Head of Investor Relations

Tel: 020 7399 0071
Email: shelly.patel@rathbones.com

Camarco

Ed Gascoigne-Pees
Julia Tilley
Tel: 020 3757 4984
Email: ed.gascoigne-pees@camarco.co.uk

*subject to regulatory approval

Rathbones Group Plc

Rathbones provides investment and wealth management services for private clients, charities, trustees and professional partners. We have been trusted for generations to manage and preserve our clients' wealth. Our tradition of investing and acting for everyone's tomorrow has been with us from the beginning and continues to lead us forward.

Rathbones has over 3,500 employees in 23 locations across the UK and Channel Islands; its headquarters is 8 Finsbury Circus, London, EC2M 7AZ.

www.rathbones.com

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