Quarterly Announcement of Funds under Management

RNS Number : 4569M

Brooks Macdonald Group PLC

12 January 2023

 

12 January 2023

BROOKS MACDONALD GROUP PLC

Quarterly Announcement of Funds under Management and Half Year Trading Update

Notice of Half Year results

"FUM up 4.5% to £16.2 billion with net flows at an annualised 4.0% for the quarter"

Brooks Macdonald Group plc ("Brooks Macdonald" or "the Group") today publishes an u pdate on its Funds under Management ("FUM") for its second quarter ended 31 December 2022, together with a Trading Update for the half year .

FUM update

For the quarter ended 31 December 2022, the Group's FUM was up 4.5% with net inflows of £0.2 billion (an annualised rate of 4.0%), reflecting continued momentum in new business, and positive investment performance of £0.5 billion, leading to a closing FUM of £16.2 billion (30 September 2022: £15.5 billion).

Highlights for the quarter included:

· Within UKIM, Platform MPS (including BM Investment Solutions) continued to gain market share, recording strong net flows in the period (annualised rate of 52.5%), and has a robust pipeline;

· UK BPS experienced net outflows in the quarter due primarily to continued economic uncertainty making clients more cautious and therefore taking longer to commit funds;

· The Group completed two acquisitions in the quarter - Integrity Wealth Solutions and Adroit Financial Planning - demonstrating its ability to identify and integrate high quality businesses that build capability and broaden the offering;

· Investment performance for the quarter was 3.5%, in line with the benchmark MSCI PIMFA Private Investor Balanced Index.

Trading update

The Group traded solidly in the first half, despite the difficult prevailing macroeconomic environment and market conditions, and underlying profit and underlying profit margin (year to date and full year forecast) are running in line with current market expectations.

Andrew Shepherd, CEO of Brooks Macdonald commented:

"I am pleased to report that we have delivered c.£350m of positive net flows so far this financial year, demonstrating the continuing demand from our clients and intermediaries for high quality investment management, despite the challenging macroeconomic environment and difficult market conditions.  It has been a solid half year for the Group, with positive organic growth and two acquisitions completed in the period, underlining our continued progress towards our strategic ambitions.  We remain in a strong position to take advantage of the great opportunities ahead for Brooks Macdonald."

Analysis of fund flows by service over the period

Quarter to 31 December 2022 (£m)
	Opening FUM 1 Oct 22	Organic net new business	Investment performance in the period	Closing FUM 31 Dec 22	Organic net new business	Total mvmt
BPS	8,344	(82)	297	8,559	(1.0)%	2.6%
MPS Custody	948	2	25	975	0.2%	2.8%
MPS Platform	2,262	297	73	2,632	13.1%	16.4%
MPS total	3,210	299	98	3,607	9.3%	12.4%
UKIM discretionary	11,554	217	395	12,166	1.9%	5.3%
Funds - DCF	407	(17)	14	404	(4.2)%	(0.7)%
Funds - Other	1,404	(24)	29	1,409	(1.7)%	0.4%
Funds total	1,811	(41)	43	1,813	(2.3)%	0.1%
UKIM total	13,365	176	438	13,979	1.3%	4.6%
International	2,159	(20)	108	2,247	(0.9)%	4.1%
Total	15,524	156	546	16,226	1.0%	4.5%
Total investment performance					3.5%
MSCI PIMFA Private Investor Balanced Index1					3.5%

Six months to 31 December 2022 (£m)
	Opening FUM	Organic net new business			Total Inv. Perf.	Closing FUM	Organic net new business	Total mvmt
	1 Jul 22	Q1	Q2	Total		31 Dec 22
BPS	8,581	(6)	(82)	(88)	66	8,559	(1.0)%	(0.3)%
MPS Custody	960	(3)	2	(1)	16	975	(0.1)%	1.6%
MPS Platform	2,053	243	297	540	39	2,632	26.3%	28.2%
MPS total	3,013	240	299	539	55	3,607	17.9%	19.7%
UKIM discretionary	11,594	234	217	451	121	12,166	3.9%	4.9%
Funds - DCF	439	(14)	(17)	(31)	(4)	404	(7.1)%	(8.0)%
Funds - Other	1,418	(20)	(24)	(44)	35	1,409	(3.1)%	(0.6)%
Funds total	1,857	(34)	(41)	(75)	31	1,813	(4.0)%	(2.4)%
UKIM total	13,451	200	176	376	152	13,979	2.8%	3.9%
International	2,216	(9)	(20)	(29)	60	2,247	(1.3)%	1.4%
Total	15,667	191	156	347	212	16,226	2.2%	3.6%
Total investment performance							1.4%
MSCI PIMFA Private Investor Balanced Index1							(0.3)%

¹ Capital-only index.

Notice of Half Year results

The Group intends to issue its preliminary statement of half year results for the period ended 31 December 2022 on Thursday 2 March 2023.

An analyst meeting will be held at 9.30am on Thursday, 2 March 2023.  Please contact Katherine Bell at FTI Consulting on 07976 870961 or e-mail [e-mail] for further details.

Enquiries to:

Brooks Macdonald Group plc Andrew Shepherd, CEO Ben Thorpe, Chief Financial Officer	www.brooksmacdonald.com 020 7659 3492
Peel Hunt LLP (Nominated Adviser and Broker) Paul Shackleton / Andrew Buchanan / John Welch	020 7418 8900
FTI Consulting Edward Berry / Laura Ewart / Katherine Bell	[e-mail] 07703 330199 / 07711 387085 / 07976 870961

Notes to editors

Brooks Macdonald Group plc, through its various subsidiaries, provides leading investment management services in the UK and internationally. The Group, which was founded in 1991 and began trading on AIM in 2005, had discretionary Funds under Management of £16.2 billion as at 31 December 2022.

Brooks Macdonald offers a range of investment management services to private high net worth individuals, pension funds, institutions, charities and trusts. The Group also provides financial planning as well as international investment management, and acts as fund manager to a range of onshore and international funds.

The Group has fifteen offices across the UK and Crown Dependencies including London, Birmingham, Cheltenham, East Anglia, Exeter, Leeds, Manchester, Nuneaton, Southampton, Tunbridge Wells, Scotland, Wales, Jersey, Guernsey and Isle of Man.

LEI: 213800WRDF8LB8MIEX37

www.brooksmacdonald.com / @BrooksMacdonald

 

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