Rathbones : 163.36 KB

(RAT)   Report
Rathbones Group Plc Funds under management and administration (FUMA) update for the year ended 31 December 2022 and notice of results Rathbones Group Plc ("Rathbones") delivered a further quarter of sustained net inflows with discretionary and managed net inflows totalling £347 million in Q4 2022 (an annualised growth rate of 3.1%) at the end of a challenging year for investors. Discretionary and managed net inflows were resilient in the year at £1.3 billion (2021: £1.8 billion), representing a growth rate of 2.6% (2021: 4.1%). Discretionary service net inflows totalled £0.9 billion (2021: £1.3 billion). Net inflows into our multi-asset fund range were strong, totalling £0.4 billion and equating to net growth for the year of 20% (2021: £0.5 billion). Total FUMA were £60.2 billion at 31 December 2022 (31 December 2021: £68.2 billion), reflecting continuing net inflows offset by a negative market movement over the year. £45.1 billion in the Investment Management business was down 10.2% from £50.3 billion at 31 December 2021, in line with the MSCI PIMFA Private Investor Balanced Index which also decreased 10.2% over the year. £11.0 billion in Rathbone Funds, was down from £13.0 billion at 31 December 2021, with continued market volatility impacting market performance and investor behaviour across the industry. Despite significant outflows across the wider asset management sector, net outflows in our single strategy fund range remained low at £0.4 billion in the year, representing 4.5% of opening FUMA (2021: net inflows of £1.2 billion). £4.1 billion in Saunderson House, was down from £4.9 billion at 31 December 2021, with net outflows of £0.2 billion (2021: nil) in line with expectations. The integration of Saunderson House is progressing in line with plan, with new propositions launched during the year beginning to be taken up by clients in the fourth quarter. Successful delivery of the first phases of our digital transformation programme, supporting greater efficiency and improving client and investment manager experiences. Outlook Whilst economic uncertainties are expected to prevail into 2023, we will remain focused on client engagement and delivery on our strategic priorities. Benefits from ongoing investment in our digital capability and wider financial planning propositions will further enable organic growth. Our strong balance sheet and clear direction means we remain well-placed to consider inorganic growth opportunities. Notice of results Our preliminary statement of annual results for the year ended 31 December 2022 will be published on Wednesday, 1 March 2023. 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 Opening Service Level Market Ann Net FUMA Inflows Outflows Net Flows Transfers1 Movement Closing FUMA Growth2 Q4 ended 31 December 2022 (£m) (£m) (£m) (£m) (£m) (£m) (£m) (%) Discretionary service 42,476 951 (697) 254 (16) 1,609 44,322 Bespoke portfolios 41,193 892 (673) 219 (70) 1,552 42,894 2.1 Managed via in-house funds 1,283 59 (24) 35 54 56 1,428 10.9 Multi-asset funds 1,973 198 (104) 94 - 92 2,159 19.1 Total discretionary & managed 44,449 1,148 (801) 347 (16) 1,701 46,481 3.1 Non-discretionary service 764 5 (28) (23) (4) 21 757 (12.0) Total wealth management 45,213 1,153 (829) 323 (20) 1,723 47,238 2.9 Single-strategy funds 6,248 316 (377) (61) - 287 6,474 (3.9) Execution only & banking 2,317 70 (120) (50) 69 68 2,404 (8.6) Total group (pre acquisitions) 53,778 1,539 (1,326) 212 49 2,078 56,116 1.6 Saunderson House 4,151 40 (107) (67) (49) 81 4,117 (6.5) Total group 57,929 1,579 (1,433) 145 - 2,159 60,233 1.0 Opening Service Level Market FUMA Inflows Outflows Net Flows Transfers Movement Closing FUMA Net Growth 12 months ended 31 December 2022 (£m) (£m) (£m) (£m) (£m) (£m) (£m) (%) Discretionary service 49,249 3,535 (2,617) 918 (175) (5,670) 44,322 Bespoke portfolios 47,985 3,306 (2,519) 787 (322) (5,557) 42,894 1.6 Managed via in-house funds 1,264 229 (98) 131 147 (113) 1,428 10.4 Multi-asset funds 1,991 790 (391) 399 - (231) 2,159 20.0 Total discretionary & managed 51,240 4,325 (3,008) 1,316 (175) (5,901) 46,481 2.6 Non-discretionary service 1,026 19 (95) (76) (81) (112) 757 (7.4) Total wealth management 52,266 4,344 (3,103) 1,240 (256) (6,013) 47,238 2.4 Single-strategy funds 8,316 1,624 (1,998) (374) - (1,468) 6,474 (4.5) Execution only & banking 2,660 220 (460) (241) 305 (321) 2,404 (9.1) Total group (pre acquisitions) 63,242 6,187 (5,561) 626 49 (7,801) 56,116 1.0 Saunderson House3 4,917 287 (526) (239) (49) (512) 4,117 (4.9) Total group 68,159 6,474 (6,087) 387 - (8,313) 60,233 0.6 Service Level Transfers represent client FUMA which has transferred from one service to another within the group during the period. Annualised net growth in flows calculated as net flows/opening FUMA. Our continued review of Saunderson House data definitions and new business disclosures has identified the need for a further restatement of our Q3 YTD position, driven by alignment of Saunderson House practices with Rathbones. Net flows previously reported at Q3 2022 were understated by £40m and market performance was overstated by £40m. This has now been reflected in the YTD table above. Breakdown of Rathbone Investment Management FUMA and flows by channel Opening Service Level Market Ann Net FUMA Inflows Outflows Net Flows Transfers Movement Closing FUMA Growth Q4 ended 31 December 2022 (£m) (£m) (£m) (£m) (£m) (£m) (£m) (%) Total direct 32,344 663 (550) 113 (123) 1,305 33,639 1.4 Total financial adviser linked 10,132 288 (147) 141 106 304 10,683 5.6 Total discretionary service 42,476 951 (697) 254 (16) 1,609 44,322 2.4 Execution only & banking 2,317 70 (120) (50) 69 68 2,404 (8.6) Non-discretionary service 764 5 (28) (23) (4) 20 757 (12.0) Total Investment Management 45,557 1,026 (845) 180 49 1,697 47,483 1.6 Opening Service Level Market FUMA Inflows Outflows Net Flows Transfers Movement Closing FUMA Net Growth 12 months ended 31 December 2022 (£m) (£m) (£m) (£m) (£m) (£m) (£m) (%) Total direct 37,800 2,401 (2,034) 367 (280) (4,249) 33,638 1.0 Total financial adviser linked 11,449 1,134 (583) 551 105 (1,420) 10,685 4.8 Total discretionary service 49,249 3,535 (2,617) 918 (175) (5,670) 44,322 1.9 Execution only & banking 2,660 220 (460) (241) 305 (321) 2,404 (9.1) Non-discretionary service 1,026 19 (95) (76) (81) (112) 757 (7.4) Total Investment Management 52,935 3,774 (3,173) 601 49 (6,101) 47,483 1.1 (iii) Total Group FUMA At 31 December At 30 September 2022 2021 Change 2022 Change £m £m % £m % Rathbone Investment Management Gross FUMA 47,483 52,935 (10.3) 45,557 4.2 Of which: discretionary wrapped funds1 (2,372) (2,683) (11.6) (2,403) (1.3) 45,111 50,252 (10.2) 43,154 4.5 Rathbone Funds 11,005 12,990 (15.3) 10,624 3.6 Saunderson House 4,117 4,917 (16.3) 4,151 (0.8) Total Group FUMA 60,233 68,159 (11.6) 57,929 4.0 1. Discretionary wrapped funds represent funds operated by Rathbone Funds, managed by both Rathbone Investment Management teams and Rathbone Funds managers 18 January 2023 For further information contact: Rathbones Group Plc Paul Stockton, Group Chief Executive Jennifer Mathias, Group Chief Financial Officer Sarah Lewandowski, Head of Investor Relations Tel: 07702605524 email: EMAIL Camarco Ed Gascoigne-Pees Julia Tilley Tel: 020 3757 4984 email: EMAIL.uk Rathbones Group Plc Rathbones provides individual 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 responsibly has been with us from the beginning and continues to lead us forward. Our ambition is to be recognised as the UK's most responsible wealth manager. Rathbones has over 2,200 staff in 14 UK locations and Jersey; its headquarters is 8 Finsbury Circus, London. URL Attachments Original Link Original Document Permalink

Disclaimer: Rathbone Brothers plc published the content on 18/01/2023. It is solely responsible. Distributed by Public on 18 January 2023 at 07:19:02 UTC.

Sales 2022 464M 569M 569M Net income 2022 61.9 M 76.0 M 76.0 M Net cash 2022 23.6% Capitalization 1 234M 1 515M 1 515M 1 724M 1 724M P/E ratio 2022 23.6% Yield 2022 3.99% Capitalization 1 234M 1 515M 1 515M 1 515M EV/Sales 2022 0,37x Ev/Sales 2023 86,9% Chart RATHBONES GROUP 86,9%

Duration: Auto. 2 months 3 months 6 month 9 months 1 year 2years 5 years 10 years max. Mean consensus OUTPERFORM Number Of Analysts 10 Average target price 2 095,00 GBP Spread / Average Target 0,67%