Rathbones Group PLC
LSE:RAT
Rathbones Group PLC
Rathbones Group PLC is an emblematic figure in the world of investment management, steeped in a history that traces its roots back to the 18th century. Relying on a reputation built on trust and personalized service, the company has evolved into one of the United Kingdom's most venerable wealth management institutions. The narrative of Rathbones is one of tradition intersecting with modernity, where its core mission revolves around crafting tailored investment solutions for its diverse clientele, which includes private clients, charities, trustees, and professional partners. Each element of their service is meticulously designed to align clients' financial paths with their long-term aspirations, subtly balancing the nuances of risk and opportunity.
At the heart of Rathbones’ operational mechanics is a well-integrated business model that marries organic growth with strategic acquisitions. The company generates revenue through a comprehensive suite of investment management services, primarily earning fees based on the value of assets under management. This approach provides a steady income stream, benefiting from market movements and expanding client portfolios. Moreover, Rathbones distinguishes itself with its discretionary investment management, allowing continuous and expert refinement of client portfolios in real-time, maximizing returns in a fast-paced economic environment. By maintaining a client-centric ethos and a robust, adaptable investment philosophy, Rathbones continues to secure its standing as a trusted steward of wealth in the investment community.
Rathbones Group PLC is an emblematic figure in the world of investment management, steeped in a history that traces its roots back to the 18th century. Relying on a reputation built on trust and personalized service, the company has evolved into one of the United Kingdom's most venerable wealth management institutions. The narrative of Rathbones is one of tradition intersecting with modernity, where its core mission revolves around crafting tailored investment solutions for its diverse clientele, which includes private clients, charities, trustees, and professional partners. Each element of their service is meticulously designed to align clients' financial paths with their long-term aspirations, subtly balancing the nuances of risk and opportunity.
At the heart of Rathbones’ operational mechanics is a well-integrated business model that marries organic growth with strategic acquisitions. The company generates revenue through a comprehensive suite of investment management services, primarily earning fees based on the value of assets under management. This approach provides a steady income stream, benefiting from market movements and expanding client portfolios. Moreover, Rathbones distinguishes itself with its discretionary investment management, allowing continuous and expert refinement of client portfolios in real-time, maximizing returns in a fast-paced economic environment. By maintaining a client-centric ethos and a robust, adaptable investment philosophy, Rathbones continues to secure its standing as a trusted steward of wealth in the investment community.
Funds Growth: Funds under management increased, with multi-asset funds and adviser-led assets both up 9% year-on-year, despite challenging market conditions.
Revenue & Profit: Operating income rose 3% to GBP 238 million and underlying profit reached GBP 50.7 million, while costs remained controlled.
Margin Guidance: The company reaffirmed guidance for a low-20s operating margin for 2023, in line with previous outlook.
Digital Investment: GBP 22 million of the planned GBP 40 million digital transformation budget has been spent; the full launch is now expected in early 2024.
Saunderson House Migration: Migration of client assets is ongoing with completion expected by Q1 2024; advisory revenues are temporarily lower as a result.
Investec Merger: The Investec Wealth & Investment combination is expected to complete by end of Q3 2023, targeting GBP 60 million in synergies over 3 years.
Dividend: Interim dividend increased to 29p, with a second interim dividend planned due to the timing of the Investec merger.
