Rathbones Group Plc · LSE:RAT
Rathbones — Rathbone Brothers — Q3 2013 Earnings Presentation
12 slides from Rathbones's earnings presentation, Nov 4, 2013
Slide 1: Rathbone Brothers Plc Quarterly Update – Analyst Dinner
RATHBONE BROTHERS PLC QUARTERLY UPDATE = 4 NOVEMBER 2013 ANALYST DINNER RATHBONES Established 1742
Slide 2: Speakers
SPEAKERS ANDY POMFRET CHIEF EXECUTIVE IVO CLIFTON INVESTMENT DIRECTOR PAUL STOCKTON FINANCE DIRECTOR JAMES WALKER INVESTMENT MANAGER
Slide 3: Third Quarter Performance
THIRD QUARTER PERFORMANCE Net operating income Funds under management Q313 Q312 Change} YTD13 YTD12 Change Investment management Unit trusts Investment management £m £m % £m £m % 3 months 9 months 9 months ended ended ended Fees 26.6 22.7 17.2 76.7 66.3 15.7 30/09/13 30/09/13 30/09/13 Commissions 89
Slide 4: Net Organic & Purchased Growth Analysis
NET ORGANIC & PURCHASED GROWTH ANALYSIS! 250 E @ 200 oO A = 150 = 2 = 100 > °o 3% 50 ° a 250 & 37 g 200 79 208 i} = : 150 83 Hy 429 = 100 § 61 a 82 77 3 50 z 40 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 ™ Organic - Charity © Organic - Private Client? = Purchased - Individual m= Purchas
Slide 5: Investment Management Fee & Commission Income
INVESTMENT MANAGEMENT FEE & COMMISSION INCOME FTSE 100 index and funds under management (2012-13) 2013 Monthly Commission v last 3 years max/min‘ 20 6750 £4.5m 19 6500 18 £4.0m 4 c i i e280 \X 2 17 E £3.5m z 6000 16 £3.0m 7: 15 8750 £2.5m 14 5500 2.0m Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Slide 6: Interest Income & Asset Allocation
INTEREST INCOME & ASSET ALLOCATION Gross treasury interest return and base rate Client cash balances (£m) 1.2% 1,200 1.0% 1,000 9 0.8% 800 0.6% 600 0.4% 02% 400 0.0% + : r r 7 : : : 7 7 1 200 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 0 Received ———Paid ——~Base Rate Oct Nov Dec Jan Feb Mar Apr
Slide 7: Asset Allocation Modelling (AAM) — A Concept
ASSET ALLOCATION MODELLING (AAM) — A CONCEPT Rathbone Investment Desk (RID) « View individual clients and small ‘client relationship’ groups + Different risk profiles + Different personal circumstances 2 Asset Allocation Modelling (AAM) « Investment manager driven « Enhancement to existing RID syste
Slide 8: Introduction to AAM
~] 5) i= V7 is INTRODUCTION TO AAM
Slide 9: Benefits of AAM
BENEFITS OF AAM IL EFFICIENCY Portfolio review and order creation linked Investment Manager’s investment ideas displayed on screen Faster review of clients CONSISTENCY Look across similar portfolios Manage individual client requirements Avoid portfolio drift INDEPENDENCE Investment Manager drives al
Slide 10: AAM Demonstration Scenarios
AAM DEMONSTRATION SCENARIOS New Client Proposal - Prospective client with £1m to invest Existing Client List - Run a portfolio review to identify which clients are furthest from target - Identify which asset classes are under/over weight - Trade on relevant stocks - Replicate the trade across client
Slide 11: Looking Ahead
LOOKING AHEAD * Invest in and refine our investment process * Investment in the UHNW client segment * Investment in specialist service areas * Legal proceedings * Increasing regulatory requirements * Market levels and momentum * Organic growth IL ie AN 1
Slide 12: Rathbone Brothers Plc Curzon Street
Rathbone Brothers Plc 1 Curzon Street London W1J 5FB Telephone +44 (0)20 7399 0000 Facsimile +44 (0)20 7399 0011 Issued by Rathbone Brothers Ple for use by professional investors only. Registered office: 1 Curzon Street, London, W1J SFB. Registered in England No. 01000403 No part of this document ma