# Rathbone Brothers Plc  Funds under management and administration increase 7.7% to £47.5 billion

- Link: https://www.directorstalkinterviews.com/rathbone-brothers-plc-funds-under-management-and-administration-increase-7-7-to-47-5-billion/412774381
- Published: 2019-05-09T08:13:34+01:00
- Author: Charlotte Edwards

**Rathbone Brothers Plc** (LON:RAT) announced a trading update for the three months
ended 31 March 2019.

> **Philip Howell, Chief Executive of Rathbones, said:**
> “In spite of ongoing political and economic uncertainties, our operating income
> in the first quarter increased 13.1% to £85.3 million (Q1 2018: £75.4 million)
> reflecting the impact of recent acquisitions and a 10.7% increase in the [FTSE 100](https://www.directorstalkinterviews.com/news/ftse-100)
> Index since 31 December 2018. The integration of Speirs & Jeffrey is proceeding
> well as we continue to focus on the successful transfer of clients to the Rathbones
> platform. Accordingly, we expect the operational performance targets in respect
> of the initial contingent consideration to be met very shortly and ahead of our
> original schedule. Total funds under management and administration increased 7.7%
> to reach a new high of £47.5 billion during the quarter.
> “Whilst we expect weak investor sentiment to continue in the short term, we continue
> to provide our clients with quality investment and advice solutions whilst pursuing
> future growth opportunities.”

**Financial highlights:**

– Total funds under management and administration were £47.5 billion at the end 
of the first quarter*, up 7.7% from £44.1 billion at 31 December 2018. Underlying
net operating income was £85.3 million during the quarter, up 13.1% from £75.4 million
from the same period last year.

– Total net organic and acquired growth in Investment Management was £130 million
during the quarter (2018: £199 million), representing a total net annualised growth
rate of 1.4% (2018: 2.4%). Net organic growth principally reflected ongoing weak
investor sentiment and the anticipated muted growth from Speirs & Jeffrey whilst
their focus remains on integration. As a result, net organic growth in the first
quarter represents an annualised growth rate of 0.1% compared to 2.0% in the first
three months of 2018.

– Net operating income of £76.8 million in Investment Management for the first quarter
of 2019 was 15.3% higher than the £66.6 million for the comparable period in 2018.
The value of the FTSE 100 Index on the first quarter charging date was 7447 compared
with 7200 a year ago. The MSCI WMA Private Investor Balanced Index was 1610 compared
to 1538 on the equivalent dates.

– Funds under management in Unit Trusts grew 8.9% to £6.1 billion at 31 March 2019
from £5.6 billion at 31 December 2018. Although net inflows of £59 million during
the quarter were lower than the £142 million posted in the prior year, this was 
a positive result amid an industry backdrop of negative net retail sales. Net operating
income of £8.5 million for the three months ended 31 March 2019 was marginally lower
than the £8.8 million for the comparable period in 2018 as managers’ box dealing
profits ceased from mid-January 2019 (Q1 2019: £0.2 million, Q1 2018: £0.9 million).

* 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 Unit Trusts and Speirs & Jeffrey.

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