Rathbones' net income rises 13% year on year

Rathbone Brothers Plc ('the Company') announces a trading update for the three months ended 30 September 2015.

Philip Howell, Chief Executive of Rathbone Brothers Plc, said:

'Third quarter net operating income increased 13% compared to a year ago in spite of subdued investment markets. Although our outlook remains cautious in light of recent markets, our agreement in early October to purchase the remaining 80% of the Vision group is an example of the investment we continue to make to take advantage of future growth opportunities.'

Highlights:

  • Total funds under management (FUM) were £27.6 billion at 30 September 2015; down 2.5% from £28.3 billion at 30 June 2015, compared to a decrease of 7.0% in the FTSE 100 Index and 3.8% in the FTSE WMA Balanced Index in the three months ended 30 September 2015.

  • Net operating income was £55.6 million for the three months ended 30 September 2015, up 13.5% from £49.0 million in the third quarter of 2014.

  • Total net organic and acquired growth of funds under management in Rathbone Investment Management was £419 million for the three months ended 30 September 2015 (2014: £2,406 million which included the acquisition of Jupiter Asset Management Limited's private client and charity investment management business). Net organic inflows were £163 million (2014: £289 million), representing an underlying annualised growth rate of 2.5% for the third quarter (2014: 5.3%).

  • Underlying net operating income of £50.5 million in Rathbone Investment Management for the three months ended 30 September 2015 was 12.0% higher than the £45.1 million for the comparable period in 2014. The value of the FTSE 100 Index on our third quarter charging date was 6062 compared with 6623 a year ago. The FTSE WMA Balanced Index was 3421 and 3454 on the equivalent dates.

  • Net interest income of £2.7 million in the third quarter was up 17.4% from £2.3 million in the same period in 2014.

  • FUM in Rathbone Unit Trust Management at 30 September 2015 were £2.8 billion, up 3.7% from £2.7 billion at 30 June 2015. Net inflows for the quarter were £99 million compared to £100 million a year ago.

  • As announced on 17 July 2015, in order to strengthen the executive team, chief risk officer Sarah Owen-Jones joined the executive committee along with four senior investment managers; Rupert Baron, Ivo Clifton, Andrew Morris and Richard Smeeton.

  • Following the announcement on 28 July 2015, Rathbone Investment Management Limited completed the issue of £20 million of 10-year subordinated notes to M&G on 3 August 2015.

  • On 1 October 2015, the Company announced that it had agreed to purchase the remaining 80.1% of Vision Independent Financial Planning Limited and Castle Investment Solutions Limited to support its strategy of broadening its distribution network.

    Issued on 22 October 2015

    Read the full Q3 2015 Interim Management Statement.

For further information contact:

Rathbone Brothers Plc
Tel: 020 7399 0000
Shelly Chadda, Investor Relations Manager
email: shelly.chadda@rathbones.com
Philip Howell, Chief Executive
Paul Stockton, Finance Director

Camarco
Tel: 020 3757 4984
Ed Gascoigne-Pees
email: ed.gascoigne-pees@camarco.co.uk

Rathbone Brothers Plc

Rathbone Brothers Plc ('Rathbones'), through its subsidiaries, 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 1,000 staff in 14 UK locations and Jersey, and has its headquarters in Curzon Street, London.

www.rathbones.com

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