Rathbones funds under management and administration rise to £60.9 billion

Third quarter trading update

Paul Stockton, Chief Executive, said:

“Following a strong third quarter of growth, our total funds under management and administration reached £60.9 billion at 30 September 2021. Positive net organic inflows in Investment Management and record net inflows into Rathbone Funds reflect our continuing momentum and delivery against the strategic priorities we have set out for growth. We continue to transform our digital capability and client experience and welcome the addition of Saunderson House’s capability in the fourth quarter. With a clear direction and strong balance sheet, we are confident that our current plans place us in a strong position to take advantage of future growth opportunities across the Rathbones Group.”

Highlights:

  • Total funds under management and administration (‘FUMA’) increased 11.3% to £60.9 billion during the first nine months of the year (31 December 2020: £54.7 billion).
    • £48.8 billion in the Investment Management business (31 December 2020: £44.9 billion).
    • £12.1 billion in the Rathbone Funds business (31 December 2020: £9.8 billion).
       
  • The Investment Management business recorded gross inflows of £1.1 billion in the third quarter, nearly doubling the £639 million recorded in Q3 2020. Net organic inflows continued to be positive at £329 million (Q3 2020: net outflows of £169 million), representing an annualised organic growth rate of 2.8%.
     
  • Rathbone Funds recorded £1.1 billion gross inflows in the period (Q3 2020: £867 million). Net inflows totalled £563 million (Q3 2020: £395 million), representing annualised net organic growth of 19.8% (Q3 2020: 19.6% annualised), with particularly strong net inflows into the Multi-Asset Portfolio Funds, Ethical Bond Fund and Global Opportunities Fund. Rathbone Funds also ranked 7th for overall net retail sales during the second quarter in the most recent Pridham report.
     
  • Underlying net operating income was £106.4 million for the three months ended 30 September 2021, an increase of 22.3% from the £87.0 million for the three months ended 30 September 2020.
    • Investment Management fees were up 28.2% compared to Q3 2020 due to positive markets and the transition of former Speirs & Jeffrey clients to Rathbones standard tariffs.
    • Commission income of £10.8 million was 8.9% lower than Q3 2020, reflecting a return to more normalised levels.
    • Net interest income totalled £0.9 million (Q3 2020: £2.2 million) reflecting UK base rate reductions in place since March 2020.
    • Fees from advisory services and other income increased by 11.1% to £4.9 million (Q3 2020: £4.5 million), reflecting good growth in both Vision Independent Financial Planning and Rathbone Financial Planning.
    • Income in Rathbone Funds, which accrues daily, totalled £17.0 million as a result of substantial funds growth throughout the year, an increase of 45.9% on the £11.7 million reported for the third quarter in 2020.
       
  • The acquisition of Saunderson House is anticipated to complete during the fourth quarter and will be reported as acquired new business in that period.

Read 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