4 May 2023

Rathbones Group Plc (“Rathbones”) announces a trading update for the three months ended 31 March 2023. 

Paul Stockton, Group Chief Executive Officer of Rathbones, said:

“Total funds under management and administration rose 1.1% in the first quarter to £60.9 billion, reflecting positive market and investment performance. Net inflows in our discretionary and managed business were £303 million, representing a 2.6% annual growth rate with net operating income increasing 6.4% compared with the previous quarter to £117.8 million."

Rathbones remains on track to meet the operating margin targets provided in the 2022 preliminary results, supported by the successful delivery of Saunderson House synergies and the launch of an enhanced digital capability. 

Over the coming months Rathbones expects to complete the combination with Investec that was announced on 4 April, subject to regulatory approvals. The Prospectus and Circular in relation to the combination will be published later this quarter. This transaction represents a significant opportunity in our sector to become the UK’s leading discretionary wealth manager.”

Financial highlights:

  • Total funds under management and administration totalled £60.9 billion at the end of the first quarter* (31 December 2022: £60.2 billion). 
    - £45.8 billion in the Investment Management business (31 December 2022: £45.1 billion).
    - £11.4 billion in the Rathbone Funds business (31 December 2022: £11.0 billion).
    - £3.7 billion in Saunderson House (31 December 2022: £4.1 billion).
  • Discretionary and managed net inflows totalled £0.3 billion (Q1 2022: £0.3 billion), representing an annualised growth rate of 2.6% (Q1 2022: 2.5%, Q4 2022: 3.1%).
  • Underlying net operating income totalled £117.8 million for the three months ended 31 March 2023, a decrease of 2.2% from the £120.5 million in the corresponding period last year.   
    - Investment Management fees decreased 3.7% to £69.5 million (Q1 2022: £72.2 million) on lower FUMA.
    - Commissions totalled £12.5 million (Q1 2022: £14.9 million), with lower commissions in line with trading volumes.  
    - Net interest income grew to £8.6 million (Q1 2022: £2.1 million), reflecting the increase in Bank of England base rates over the year, from 0.75% at 31 March 2022 to 4.25% currently.  
    - Fees from advisory services and other income decreased 23.8% to £11.2 million (Q1 2022: £14.7 million), as advisers focused on the migration of Saunderson House clients.Income in Rathbone Funds decreased 3.6% to £16.0 million (Q1 2022: £16.6 million) on lower FUM.
  • The final dividend for 31 December 2022 of 56 pence per share will be paid on 9 May 2023. 

* Funds under management at the end of the first quarter are measured at 5 April for Investment Management (to coincide with the first charging date for Investment Management private clients) and at 31 March for Rathbone Funds and Saunderson House.

Read the full statement here

Additional Comments:

Annual General Meeting
The Annual General Meeting will be held today, 4 May, at 10:00am at our London head office at 8 Finsbury Circus, London EC2M 7AZ. 

Interim results 
The interim results for the six months to 30 June 2023 will be announced on 26 July 2023. 


For further information contact: 

Rathbones Group Plc
Paul Stockton, Group Chief Executive Officer
Jennifer Mathias, Group Chief Financial Officer
Sarah Lewandowski, Head of Investor Relations

Tel: 07702605524
Email: sarah.lewandowski@rathbones.com

Ed Gascoigne-Pees
Julia Tilley

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