This statement, issued on the day of the 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 2014 to 13 May 2014 and includes trading results for the three months ended 31 March 2014.
At the Annual General Meeting later today, Mark Nicholls, Chairman of Rathbones, will say:
“Our first quarter was positive with total funds under management at the end of the quarter reaching £22.8 billion, up 3.6% from 31 December 2013. The recent acquisitions of Jupiter Asset Management Limited's private client and charity investment management business and Deutsche Bank’s London private client investment management business are progressing well.
“Our outlook remains optimistic with the impact of recent acquisitions expected to have a positive effect on earnings in 2015. We are continuing to invest in people and systems whilst managing costs carefully and expect future growth opportunities to arise in the sector.”
Highlights:
- Total funds under management were £22.8 billion at the end of the first quarter*, up 3.6% from £22.0 billion at 31 December 2013 and 16.3% from £19.6 billion a year ago. In the first quarter, the FTSE 100 Index decreased 0.8% and the FTSE WMA (formerly APCIMS) Balanced Index increased 0.6%.
- Total net growth of funds under management in Rathbone Investment Management was £309 million, representing a total net annualised growth rate of 6.1% (2013: 8.8%). This includes acquired inflows of £98 million and net organic growth of £211 million for the quarter. Net organic growth in the first quarter represents an annualised growth rate of 4.2% compared to 3.8% in the first three months of 2013.
- The recently announced acquisitions of Jupiter Asset Management Limited’s private client and charity investment management business (“Jupiter Private Clients”) and Deutsche Bank’s London private client investment management business (“Deutsche London”) have had no impact on funds under management in the first quarter. Assuming that all of the funds under management of Jupiter Private Clients and Deutsche London transfer (based upon their values at 14 March and 21 February 2014 respectively), this would increase total funds under management by approximately 12.3% to £25.6 billion on a pro-forma basis.
- Underlying net operating income in Rathbone Investment Management of £46.3 million (2013: £41.6 million) was up 11.3% year on year in the first three months of 2014. The FTSE 100 Index was 6696 on our 5 April billing date, up 7.1% compared to 6250 on the same date in 2013. The FTSE WMA (formerly APCIMS) Balanced Index, measured over the same period, increased by 5.0%.
- Commission income of £12.6 million (2013: £12.0 million) was up 5.0% year on year and reflected normal seasonal patterns in the run up to the end of the 2013/14 tax year.
- Net interest income of £2.1 million in the first three months of 2014 was consistent with the £2.1 million earned in the corresponding period in 2013. Cash in client portfolios averaged £1.0 billion in the first quarter of 2014 (2013 average: £0.9 billion).
- Funds under management grew strongly in Rathbone Unit Trust Management, increasing 16.7% to £2.1 billion at 31 March 2014 from £1.8 billion at 31 December 2013, with net inflows of £222 million during the quarter. Underlying net operating income of £3.5 million (2013: £2.4 million) was up 45.8% year on year in the first three months of 2014.
- On 27 March 2014, Rathbones sold its holding of 300,000 London Stock Exchange Group plc shares, resulting in a gain of £5.9 million being recognised in net operating income in the quarter.
- On 1 May 2014, Rathbone Trust Company Limited purchased 100% of law firm Rooper & Whately to add depth to the range of its advisory services. As a result, Rathbone Trust Company Limited is now regulated by the Solicitors Regulation Authority.
* Funds under management at the end of the first quarter are measured at 5 April for Rathbone Investment Management, to coincide with the first key charging date for Rathbone Investment Management private clients, and at 31 March for Rathbone Unit Trust Management.
Read the full Q1 Interim statement.
For further information contact:
Rathbone Brothers Plc
Tel: 020 7399 0000
email: marketing@rathbones.com
Mark Nicholls, Chairman
Philip Howell, Chief Executive
Paul Stockton, Finance Director
Quill PR
Tel: 020 7466 5054
email: Hugo@quillpr.com
Hugo Mortimer-Harvey
Rathbone Brothers Plc
Rathbone Brothers Plc is a leading provider of high-quality, personalised investment and wealth management services for private clients, charities and trustees. This includes discretionary investment management, unit trusts, tax planning, trust and company management, pension advice and banking services.
Rathbones has over 870 staff in 13 UK locations and Jersey, and has its head office at 1 Curzon Street, London.