FUMA update and notice of results
In brief · summary, not quotable
No summary for this filing – the full text is below.
Full announcement
Select text to share a quote on X · sign in to keep highlights & notes in your RAT notes
- Total FUMA, including Investec Wealth & Investment (IW&I), reached £105.3 billion at 31 December 2023 (30 September 2023: £100.7 billion, 31 December 2022: £60.2 billion) consisting of:
- £48.0 billion in Rathbone Investment Management (RIM) (31 December 2022: £45.1 billion).
- £42.2 billion in IW&I (31 December 2022: £nil).
- £1.3 billion in Saunderson House (31 December 2022: £4.1 billion) as FUMA in that entity continues to migrate as planned to Rathbones investment propositions.
- £13.8 billion in Rathbone Asset Management (RAM, formerly Rathbone Unit Trust Management) (31 December 2022: £11.0 billion).
- Total net flows in wealth management were flat in the quarter as positive inflows in Rathbones offset anticipated outflows in IW&I:
- Rathbones discretionary and managed net inflows for the quarter totalled £0.4 billion.
- Net outflows in IW&I were £0.3 billion, reflecting the anticipated impact of investment manager departures that predominantly occurred prior to the announcement of the combination with Rathbones. Since then, investment manager turnover has been low, engagement with colleagues at IW&I has been very positive, and integration work remains on track.
- Net inflows into our multi-asset fund range, comprising both direct and managed solutions via in-house funds, totalled £0.6 billion in the quarter. Net outflows in RAM single strategy funds of £0.1 billion were resilient against the wider asset management industry backdrop.
- Market and investment performance added £4.9 billion to FUMA in the quarter.
Outlook
Economic uncertainties are expected to persist in 2024, however, Rathbones will continue to remain focused on client engagement as we deliver toward our key strategic objectives.
Until the IW&I business is fully integrated, the existing client billing dates of each of the investment management businesses will be maintained. The principal charging dates for Rathbone Investment Management clients are 5 April, 30 June, 30 September and 31 December. The principal charging dates in 2024 for IW&I are 29 February, 31 May, 31 August and 30 November.
Rathbones begins 2024 as an enlarged group that remains well-positioned to take advantage of both benefits of scale and future growth opportunities.
Notice of results
Our preliminary statement of annual results for the year ended 31 December 2023 will be published on
Wednesday, 6 March 2024. A presentation to analysts will be held on the same day.
Funds under management and administration
Breakdown of FUMA and flows by service level
| Q4 ended 31 December 2023 | Opening FUMA (£m) | Gross Inflows (£m) | Gross Outflows (£m) | Net Flows (£m) | Transfers 1 (£m) | SHL Migrated Assets (£m) | Market & Investment Performance (£m) | Closing FUMA (£m) | Ann Net Growth 2 (%) |
|---|---|---|---|---|---|---|---|---|---|
| Rathbones Investment Management | 45,705 | 1,158 | (880) | 278 | 59 | 626 | 2,091 | 48,759 | 2.4 |
| Bespoke portfolios | 42,630 | 1,050 | (779) | 271 | (43) | 279 | 1,867 | 45,004 | 2.5 |
| Managed via in-house funds | 3,075 | 108 | (101) | 7 | 102 | 347 | 224 | 3,755 | 0.9 |
| Multi-asset funds 3 | 2,345 | 280 | (166) | 114 | - | - | 86 | 2,545 | 19.4 |
| Rathbones discretionary & managed | 48,050 | 1,438 | (1,046) | 392 | 59 | 626 | 2,177 | 51,304 | 3.3 |
| Non-discretionary service | 732 | 11 | (9) | 2 | (25) | - | 43 | 752 | 1.1 |
| Investec W&I (from 1 October) 4 | 40,781 | 796 | (1,123) | (327) | (115) | - | 1,928 | 42,267 | (3.2) |
| Saunderson House 5 | 2,211 | 15 | (113) | (98) | - | (631) | 108 | 1,590 | (17.7) |
| Total wealth management | 91,774 | 2,260 | (2,291) | (31) | (81) | (5) | 4,256 | 95,913 | (0.1) |
| Single-strategy funds | 6,313 | 299 | (412) | (113) | - | - | 477 | 6,677 | (7.2) |
| Execution only & banking | 2,594 | 86 | (164) | (78) | 81 | 5 | 148 | 2,750 | (12.0) |
| Total group 4 | 100,681 | 2,645 | (2,867) | (222) | - | - | 4,881 | 105,340 | (0.9) |
| 12 months ended 31 December 2023 | Opening FUMA (£m) | Gross Inflows (£m) | Gross Outflows (£m) | Net Flows (£m) | Transfers 1 (£m) | SHL Migrated Assets (£m) | Market & Investment Performance (£m) | Closing FUMA (£m) | Ann Net Growth 2 (%) |
| Rathbones Investment Management | 44,322 | 4,216 | (3,824) | 392 | (214) | 2,389 | 1,870 | 48,759 | 0.9 |
| Bespoke portfolios | 42,894 | 3,804 | (3,556) | 248 | (896) | 1,107 | 1,651 | 45,004 | 0.6 |
| Managed via in-house funds | 1,428 | 412 | (268) | 144 | 682 | 1,282 | 219 | 3,755 | 10.1 |
| Multi-asset funds 3 | 2,159 | 896 | (597) | 299 | - | - | 87 | 2,545 | 13.8 |
| Rathbones discretionary & managed | 46,481 | 5,112 | (4,421) | 691 | (214) | 2,389 | 1,957 | 51,304 | 1.5 |
| Non-discretionary service | 757 | 40 | (62) | (22) | (38) | - | 55 | 752 | (2.9) |
| Investec W&I (from 1 October) 4 | 40,781 | 796 | (1,123) | (327) | (115) | - | 1,928 | 42,267 | |
| Saunderson House 5 | 4,117 | 119 | (510) | (391) | - | (2,396) | 260 | 1,590 | (9.5) |
| Total wealth management | 92,136 | 6,067 | (6,116) | (49) | (367) | (7) | 4,200 | 95,913 | (0.1) |
| Single-strategy funds | 6,474 | 1,275 | (1,838) | (563) | - | - | 766 | 6,677 | (8.7) |
| Execution only & banking | 2,404 | 327 | (541) | (214) | 367 | 7 | 186 | 2,750 | (8.7) |
| Total group 4 | 101,014 | 7,669 | (8,495) | (826) | - | - | 5,152 | 105,340 | (0.8) |
- Breakdown of Investment Management FUMA and flows by channel
| Q4 ended 31 December 2023 | Opening FUMA (£m) | Gross Inflows (£m) | Gross Outflows (£m) | Net Flows (£m) | Transfers 1 (£m) | SHL Migrated Assets (£m) | Market & Investment Performance (£m) | Closing FUMA (£m) | Ann Net Growth 2 (%) |
|---|---|---|---|---|---|---|---|---|---|
| Total direct | 32,948 | 747 | (615) | 132 | (21) | - | 1,352 | 34,411 | 1.6 |
| Total financial adviser linked | 12,757 | 411 | (265) | 146 | 80 | 626 | 739 | 14,348 | 4.6 |
| Total discretionary service | 45,705 | 1,158 | (880) | 278 | 59 | 626 | 2,091 | 48,759 | 2.4 |
| Execution only & banking | 2,594 | 86 | (164) | (78) | 81 | 5 | 148 | 2,750 | (12.0) |
| Non-discretionary service | 732 | 11 | (9) | 2 | (25) | - | 43 | 752 | 1.1 |
| Total Investment Management | 49,031 | 1,255 | (1,053) | 202 | 115 | 631 | 2,282 | 52,261 | 1.6 |
| Investec W&I (from 1 October) 4 | 40,781 | 796 | (1,123) | (327) | (115) | - | 1,928 | 42,267 | (3.2) |
| Total Investment Management for enlarged group 4 | 89,812 | 2,051 | (2,176) | (125) | - | 631 | 4,210 | 94,528 | (0.6) |
| 12 months ended 31 December 2023 | Opening FUMA (£m) | Gross Inflows (£m) | Gross Outflows (£m) | Net Flows (£m) | Transfers 1 (£m) | SHL Migrated Assets (£m) | Market & Investment Performance (£m) | Closing FUMA (£m) | Ann Net Growth 2 (%) |
| Total direct | 33,639 | 2,709 | (2,848) | (139) | (247) | - | 1,158 | 34,411 | (0.4) |
| Total financial adviser linked | 10,683 | 1,507 | (976) | 531 | 33 | 2,389 | 712 | 14,348 | 5.0 |
| Total discretionary service | 44,322 | 4,216 | (3,824) | 392 | (214) | 2,389 | 1,870 | 48,759 | 0.9 |
| Execution only & banking | 2,404 | 327 | (541) | (214) | 367 | 7 | 186 | 2,750 | (8.9) |
| Non-discretionary service | 757 | 40 | (62) | (22) | (38) | - | 55 | 752 | (2.9) |
| Total Investment Management | 47,483 | 4,583 | (4,427) | 156 | 115 | 2,396 | 2,111 | 52,261 | (0.3) |
| Investec W&I (from 1 October) 4 | 40,781 | 796 | (1,123) | (327) | (115) | - | 1,928 | 42,267 | |
| Total Investment Management for enlarged group 4 | 88,264 | 5,379 | (5,550) | (171) | - | 2,396 | 4,039 | 94,528 | (0.2) |
- Transfers represent client FUMA which has transferred from one service to another and other intra-group movements.
- Annualised net growth in flows calculated as net flows/opening FUMA.
- Opening FUMA for Investec W&I is from 1 October 2023.
- Total funds under advice by Saunderson House, including those clients transferred to fellow group companies totalled £4.0 billion at 31 December 2023 (31 December 2022: £4.1 billion).
- Total Group FUMA
| At 31 December | At 30 September | ||||
|---|---|---|---|---|---|
| 2023 | 2022 | Change | 2023 | Change | |
| £m | £m | % | £m | % | |
| Rathbones Investment Management Gross FUMA | 52,261 | 47,483 | 10.1 | 49,031 | 6.6 |
| Of which: invested in RAM discretionary wrapped funds 6 | (4,290) | (2,372) | 80.9 | (3,631) | 18.1 |
| Rathbones Asset Management | 13,770 | 11,005 | 25.1 | 12,547 | 9.7 |
| Saunderson House | 1,590 | 4,117 | (61.4) | 2,211 | (28.1) |
| Of which: invested in RAM discretionary wrapped funds 7 | (243) | - | - | (246) | (1.2) |
| Total FUMA excluding Investec W&I | 63,088 | 60,233 | 4.7 | 59,912 | 5.3 |
| Investec W&I | 42,267 | - | - | 40,781 | 3.6 |
| Of which: invested in RAM discretionary wrapped funds 8 | (15) | - | - | (12) | 25.0 |
| Total Group FUMA for enlarged group | 105,340 | - | - | 100,681 | 4.6 |
- Discretionary wrapped funds represent RAM funds which are held within portfolios managed by RIM.
- Discretionary wrapped funds represent RAM funds which are held within portfolios managed by Saunderson House teams.
- Discretionary wrapped funds represent RAM funds which are held within portfolios managed by Investec W&I teams.
Rathbones has over 3,500 employees in 23 locations across the UK and Channel Islands; its headquarters is 8 Finsbury Circus, London, EC2M 7AZ.
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.