Paul Stockton, Group Chief Executive of Rathbones, said:

“Despite challenging investment markets Rathbones has delivered a resilient quarter, with annualised discretionary and managed net organic growth of 3.3% and overall group investment performance that compares well against industry benchmarks. Market movements in investment values to 30 September 2022 adversely impacted total FUMA however, which fell 1.7% in the quarter to £57.9 billion against the MSCI PIMFA Private Investor Balanced Index, which fell 3.5% over the same period.

We continue to place a high priority on engaging meaningfully with our clients, both face-to-face and digitally, and are on track to deliver the first phase of our planned InvestCloud and Charles River implementations by the end of 2022. Rathbones is well-positioned to take advantage of the future growth opportunities that can arise both during and after periods of investment market volatility.”

Highlights:

• Total funds under management and administration (‘FUMA’) were £57.9 billion at 30 September (30 June 2022: £58.9 billion, 31 December 2021: £68.2 billion).
  - £43.1 billion in the Investment Management business (30 June 2022: £43.8 billion, 31 December 2021: £50.3 billion).
  - £10.6 billion in the Rathbone Funds business (30 June 2022: £10.9 billion, 31 December 2021: £13.0 billion
  - £4.2 billion in Saunderson House (30 June 2022: £4.2 billion, 31 December 2021: £4.9 billion).
   
• Discretionary and managed net inflows were resilient at £0.4 billion (Q3 2021: £0.6 billion) in the quarter to 30 September 2022, representing an annualised growth rate of 3.3% (Q3 2021: 4.8%).
  - Discretionary service net inflows totalled £0.3 billion (Q3 2021: £0.5 billion).
  - Net inflows into our multi-asset fund range (a central part of our managed offering to the adviser market) were strong, totalling £0.1 billion and equating to annualised net growth for the period of 17.4% (Q3 2021: £0.1 billion).
   
• Despite continued market volatility and significant outflows across the wider asset management industry, net outflows in our single strategy fund range remained low at £0.1 billion in the quarter (Q3 2021: net inflows of £0.4 billion).
   
• Saunderson House integration is progressing well, with new propositions launched during the quarter. Net outflows of £0.1 billion (Q3 2021: n/a) were in line with expectations.
   
• Our digital investment programme is progressing well with planned releases of InvestCloud and Charles River on track for delivery later this year. Functionality within MyRathbones, our digital portal and app, has improved materially in 2022 supporting engagement with both clients and advisers via easy-to-use data sharing, messaging and reporting capabilities.
   
• Underlying net operating income was £113.0 million for the three months ended 30 September 2022, an increase of 6.2% from the £106.4 million for the three months ended 30 September 2021.
  - Investment Management fees totalled £67.5 million (Q3 2021: £72.8 million), reflecting lower FUMA on the principal charging date.
  - Commission income totalled £12.1 million, up 12.0% (Q3 2021: £10.8 million) given increased trading volumes amid market volatility.
  - Net interest income increased materially, as expected, to £5.6 million from £0.9 million in Q3 2021, reflecting UK base rate rises during the year to date.
  - Fees from advisory services and other income increased to £12.4 million (Q3 2021: £4.9 million), reflecting organic growth and the impact of the Saunderson House acquisition.
  - Income in Rathbone Funds, which accrues daily, totalled £15.4 million (Q3 2021: £17.0 million).

View the full statement here.

For further information contact:

Rathbone Brothers Plc

Tel: 020 7399 0000
email: shelly.patel@rathbones.com

Paul Stockton, Chief Executive
Jennifer Mathias, Group Finance Director
Shelly Patel, Head of Investor Relations

Camarco

Tel: 020 3757 4984
email: ed.gascoigne-pees@camarco.co.uk

Ed Gascoigne-Pees
Julia Tilley