Breaking News

Allergan Files Lawsuit Alleging Pershing, Valeant Violated SEC Rules
Tweet TWEET

Rathbone Brothers PLC: Q3 2013 Interim Management Statement

         Rathbone Brothers PLC: Q3 2013 Interim Management Statement

                Rathbones grows funds under management by 15%

This statement is an Interim Management Statement in accordance with the UK
Listing Authority's Disclosure and Transparency Rules.

Chief Executive, Andy Pomfret, commented:

"Investment conditions have been favourable in 2013 and this, together with
improving levels of net organic growth in the third quarter, has helped
increase total funds under management by over 15% since the beginning of the
year.

Our outlook remains positive as we continue to respond to the ongoing changes
in the industry and develop as a leading UK provider of high-quality
personalised discretionary investment management services."

Highlights:

  *Total funds under management (FUM) were £20.8 billion at 30 September
    2013; up 15.6% from £18.0 billion at 31 December 2012, compared to an
    increase of 9.6% in the FTSE 100 Index and an increase of 7.5% in the FTSE
    APCIMS Balanced Index in the first nine months of 2013. Total FUM
    increased £0.9 billion in the third quarter from £19.9 billion at 30 June
    2013 (an increase of 4.5%).

  *The total annualised rate of net inflows of 9.1% (2012: 5.5%) in Rathbone
    Investment Management for the nine months ended 30 September 2013 includes
    acquired FUM of £554 million. The underlying annualised rate of net
    organic growth of FUM was 4.7% for the nine months ended 30 September 2013
    (2012: 2.8%) and 5.6% for the quarter ended 30 September 2013 (2012:
    1.0%).

  *Net operating income of £123.3 million in Rathbone Investment Management
    for the nine months ended 30 September 2013 was 12.7% higher than 2012.
    The average value of the FTSE 100 Index on our three principal charging
    dates in 2013 was 6309 compared to 5679 on the same dates in 2012. The
    average FTSE APCIMS Balanced Index, measured on the same dates, rose 9.3%.
    Rathbone Investment Management's net operating income in the three months
    ended 30 September 2013 was up 11.6% on 2012, at £40.3 million.

  *Net interest income of £6.3 million in the first nine months of 2013 was
    down 17.1% from £7.6 million in the same period in 2012. This includes
    interest income from loans to clients which totalled £1.6 million for the
    nine months to 30 September 2013, up 60.0% from £1.0 million in 2012. 

  *FUM in Rathbone Unit Trust Management at 30 September 2013 was £1.6
    billion, up 23.1% from £1.3 billion at 31 December 2012. Net inflows of
    £157 million in the year to date include £59 million from a new mandate
    with Scottish Life in the third quarter.

Net operating income

                      3 months ended 30 September  9 months ended 30 September
                          2013     2012    Change      2013     2012    Change
                            £m       £m         %        £m       £m         %
Investment Management
- Fees                    26.6     22.7      17.2      76.7     66.3      15.7
- Commissions              8.9      8.2       8.5      32.1     28.1      14.2
- Net interest income      2.1      2.6    (19.2)       6.3      7.6    (17.1)
- Fees from advisory
services^1 and other
income                     2.7      2.6       3.8       8.2      7.4      10.8
                          40.3     36.1      11.6     123.3    109.4      12.7
Unit Trusts                2.9      2.2      31.8       8.0      6.6      21.2
Net operating income      43.2     38.3      12.8     131.3    116.0      13.2
Average FTSE 100
Index on principal
charging dates^2          6462     5742      12.5      6309     5679      11.1

1.Including income from trust, tax and pension advisory services.

2.The principal charging dates for Investment Management clients are 5
    April, 30 June, 30 September and 31 December. Unit Trust income accrues
    on daily levels of funds under management.

Funds under management

                                              3 months ended   9 months ended
                                               30 September     30 September
                                               2013    2012     2013    2012
                                                £m      £m       £m      £m
(i) Investment Management
Opening FUM (1 July / 1 January)              18,429 15,502  16,714 14,764
Inflows                                          603    406   2,046  1,504
 Organic new business                           502    329   1,492  1,200
 Acquired new business                      101     77     554    304
Outflows                                        (245)   (290)    (908)   (890)
Market adjustment                                348    504   1,283    744
Closing FUM (30 September)                    19,135 16,122  19,135 16,122
Underlying annualised rate of net organic        5.6%    1.0%     4.7%    2.8%
growth
Annualised rate of net inflows                   7.8%    3.0%     9.1%    5.5%
(ii) Unit Trusts
Opening FUM (1 July / 1 January)               1,443  1,147   1,266  1,084
Inflows                                          155     63     340    201
Outflows                                         (64)    (45)    (183)   (151)
Market adjustment                                 86     64     197     95
Closing FUM (30 September)                     1,620  1,229   1,620  1,229
Total FUM (30 September)                      20,755 17,351  20,755 17,351
Net fund inflows
Investment Management                            358    116   1,138    614
Unit Trusts                                       91     18     157     50
Total                                            449    134   1,295    664

The FTSE 100 Index closed at 6572 on 16 October 2013, a rise of 1.7% since 30
September 2013, which has increased the value of funds under management.
Investment Management fee income in the fourth quarter is dependent upon the
value of funds under management at 31 December 2013.

There has been no material change in the position previously reported in
relation to the insurance coverage proceedings, and related underlying Jersey
trust proceedings, since the publication of our interim results to 30 June
2013 on 1 August 2013. We refer you to the paragraphs headed 'Business review'
and 'Risks and key judgements' on pages two and three and to Note 15 of our
2013 interim statement.

The proceedings to confirm insurance cover against the excess insurers are
currently taking place in the Commercial Court in London. We expect to make a
further announcement when judgement has been handed down.

17 October 2013

For further information contact:

Rathbone Brothers Plc           Quill PR
Tel: 020 7399 0000              Tel: 020 7466 5054
email: marketing@rathbones.com  email: hugo@quillpr.com

Mark Nicholls, Chairman         Hugo Mortimer-Harvey
Andy Pomfret, Chief Executive
Paul Stockton, Finance Director

Rathbone Brothers Plc

Rathbone Brothers Plc 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 840 staff in 13 UK locations and Jersey, and has its
headquarters in Curzon Street, London.

www.rathbones.com

------------------------------------------------------------------------------

This announcement is distributed by Thomson Reuters on behalf of Thomson
Reuters clients.

The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
the
information contained therein.

Source: Rathbone Brothers PLC via Thomson Reuters ONE
HUG#1736195