Trading Statement

RNS Number : 1516F

Rathbone Brothers PLC

07 January 2010

 



Rathbone Brothers Plc 

Trading Update, Board Appointments, and Notice of Results

Trading Update

Rathbone Brothers Plc ("Rathbones"), a leading provider of discretionary fund management and wealth management services for private investors and trustees, announces that:

• Total funds under management as at 31 December 2009 were £13.10 billion, up 25.2% compared with £10.46 billion as at 31 December 2008.

• Funds managed by Rathbone Investment Management Limited were £12.16 billion as at 31 December 2009, up 29.0% from £9.43 billion as at 31 December 2008. This compares with a 22.1% increase in the FTSE 100 Index and a 12.7% increase in the FTSE APCIMS Balanced Index over the same period. 

• The underlying annualised rate of net organic growth in funds under management in Rathbone Investment Management Limited was 6.7 % in the year ended 31 December 2009 (2008: 7.4%).

• The FTSE 100 Index ended 2009 at 5413, making the average index 4706 for the full year, based on quarter end billing dates (2008: 5227). 

• Cash held in client portfolios was £0.8 billion as at 31 December 2009 (2008: £1.1 billion). Interest income in the second half of 2009 reflected exceptionally low interest rates which are expected to continue well into 2010. 

• Funds managed by Rathbone Unit Trust Management Limited fell from £1.03 billion as at 31 December 2008 to £0.94 billion as at 31 December 2009, a decrease of 8.7%, largely reflecting net redemptions of £234 million offset by market movements in the year.

Following the transaction with Lloyds Banking Group in October 2009, Rathbone Investment Management Limited has received consent from 2,352 former Bank of Scotland Portfolio Management Service clients, representing some 60% of the total number, and approximately £425 million of funds under management (at 31 August values). Of these funds, £381 million have been included in total funds under management at 31 December 2009. 

Plans to migrate discretionary private client portfolios from Lloyds TSB Private Banking Limited over 2010, and launch the exclusive distribution agreement, are at an advanced stage.  The costs associated with the acquisition of all client relationships will be capitalised and amortised as an intangible asset over their estimated useful life of 10 years. No goodwill is expected to arise, and associated transaction costs of £0.8m will be charged as an expense in 2009.

Board Appointments

James Barclay, who has been a non-executive director for the past six years, has decided he will not stand for re-election at the 2010 Annual General Meeting. Mark Robertshaw has decided that he can no longer devote the time he considers is appropriate, so will also not stand for re-election. Peter Pearson Lund will also be leaving the board upon his retirement on 31 March 2010.  James, Mark and Peter have all made important and valuable contributions to our board. We thank them and wish them well.

On 6 January 2010, the board of Rathbone Brothers Plc appointed Kate Avery and Kathryn Matthews as independent non-executive directors. 

Kate Avery's career began with Barclays Plc, where she worked for some eighteen years, and was managing director of Barclays Bank Trust Company and Barclays Stockbrokers. She subsequently joined Legal and General Group Plc and served on its main board for eight years until January 2009, latterly as group executive director for wealth management. She also served as a non-executive director with Kelda Group plc until its sale to an infrastructure fund in 2008. She is currently chairman of Openwork Holdings Limited.

Kathryn Matthews' entire career has been in investment management, most recently as chief investment officer, Asia Pacific (ex Japan) for Fidelity International. Prior to that, she held senior appointments with William M Mercer, AXA Investment Managers, Santander Global Advisers and Baring Asset Management. She is a non-executive director of Hermes Fund Managers Limited and of Fidelity Asian Values Plc.

No other information is required to be disclosed pursuant to Listing Rule 9.6.13.

Dividend

It is the board's intention to recommend the payment of a second interim dividend to be paid in March 2010, in place of a final dividend in May 2010.

Outlook

Equity markets rose markedly in the second half of 2009, but the outlook for 2010 remains uncertain as the UK faces an environment of exceptionally low interest rates and an election before June 2010. The full benefit of the transaction with Lloyds Banking Group is not expected to arise until 2011; meanwhile Rathbones continues to grow organically and remains well capitalised.

Notice of Results

Rathbone Brothers Plc will issue its preliminary results for the year ended 31 December 2009 on Wednesday 24 February 2010. These results are anticipated to be in line with market expectations.

7 January 2010

ENDS

For further information contact:

Rathbone Brothers Plc 020 7399 0000

Mark Powell, Chairman

Andy Pomfret, Chief Executive

Paul Stockton, Finance Director

Emily Morris, Marketing Director

Brunswick

Kate Holgate/Helen Barnes 020 7404 5959

Notes for editors:

Rathbone Brothers Plc

Rathbone Brothers Plc is a leading independent provider of high-quality, personalised investment and wealth management services for private investors, charities and trustees. This includes discretionary investment management, tax and financial planning and unit trusts. 

Rathbones has nearly 700 staff in 10 UK locations and Jersey, and has its headquarters in New Bond Street, London.

Statements made in this announcement that look forward in time or that express management's beliefs, expectations or estimates regarding future occurrences are "forward-looking statements" within the meaning of the United States federal securities laws. These forward-looking statements reflect Rathbones' current expectations concerning future events and actual results may differ materially from current expectations or historical results.  

Certain data contained within this announcement has been sourced from management accounts and thus has not been audited.

 

END

 

 

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