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
| Q4 ended 31 December 2022 | Opening FUMA (£m) | Inflows (£m) | Outflows (£m) | Net Flows (£m) | Service Level Transfers1 (£m) | Market Movement (£m) | Closing FUMA (£m) | Ann Net Growth2 (%) |
| 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 |
| 12 months ended 31 December 2022 | OpeningFUMA (£m) | Inflows (£m) | Outflows (£m) | Net Flows (£m) | Service Level Transfers (£m) | Market Movement (£m) | Closing FUMA (£m) | Net Growth (%) |
| 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 |
(1) Service Level Transfers represent client FUMA which has transferred from one service to another within the group during the period.
(2) Annualised net growth in flows calculated as net flows/opening FUMA.
(3) 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.
(ii) Breakdown of Rathbone Investment Management FUMA and flows by channel
| Q4 ended 31 December 2022 | OpeningFUMA (£m) | Inflows (£m) | Outflows (£m) | Net Flows (£m) | Service Level Transfers (£m) | Market Movement (£m) | Closing FUMA (£m) | Ann Net Growth (%) |
| 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 |
| 12 months ended 31 December 2022 | OpeningFUMA (£m) | Inflows (£m) | Outflows (£m) | Net Flows (£m) | Service Level Transfers (£m) | Market Movement (£m) | Closing FUMA (£m) | Net Growth (%) |
| 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: sarah.lewandowski@rathbones.com
Camarco
Ed Gascoigne-Pees
Julia Tilley
Tel: 020 3757 4984
email: ed.gascoigne-pees@camarco.co.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.
www.rathbones.com