Trading Update

RNS Number : 9379M

Brooks Macdonald Group PLC

26 January 2016

 

26 January 2016

BROOKS MACDONALD GROUP PLC

Half year trading update and Quarterly Announcement of Funds under Management ("FUM")

Notice of Half Year Results

Brooks Macdonald Group plc (the "Group"), the AIM listed integrated wealth management group, today announces a trading update for its half year ended 31 December 2015 together with an update on its funds under management.

Trading Update

Discretionary funds for the half year rose by 5.52%. This rise is reflected across all three businesses, Asset Management, Funds and International against the WMA balanced index which declined 0.75% over the six months.

Portfolios held up well in a period of significant volatility and we continue to pursue our core growth objectives of organic growth and infrastructure development.

In terms of discretionary funds under management new business was ahead of management expectations however profits were affected by the faster than expected pace of conversion from advisory to discretionary in Brooks Macdonald International (BMI). This is positive for the future although negatively impacted trading income in the first half. Our Funds business increased its FUM during the period but exceptional costs incurred in relation to two of its specialist funds prevented it from moving into profitability as had been expected.

Quarterly Funds under Management Update

Discretionary

As at 31 December 2015, discretionary funds under management ('FUM') totalled GBP £7.82 billion, an increase of 6.71% (30 September 2015: £7.33 billion).  As a comparison the WMA balanced index rose by 3.22% over the quarter.

This represents all our discretionary funds across the Group (Asset Management, Funds and International) and this growth was a combination of performance (£278m) and net new business (£214m) over the quarter.

Analysis of discretionary fund flows over the quarter

	December 2015  (quarter on quarter) £m
Opening discretionary FUM	7330
Net new discretionary business	214
Acquisitions	0
Investment growth	278
Total FUM growth	492
Closing FUM	7822
Organic growth (net of markets) %	2.92
Total growth %	6.71

Property assets under administration

The Group's property management business Braemar Estates had property assets under administration of £1.127 billion, an increase of 1.29% (30 September 2015: £1.073 billion).

Third party assets under administration

The Group now has third party assets under administration in excess of £270 million (30 September 2015: >£260million).

Notice of Results

The Group intends to issue its half year results on Thursday 17 March 2016.

Chris Macdonald, Chief Executive of Brooks Macdonald, commented:

"The Group has made good progress in the first half despite considerable market volatility, with FUM exceeding £7.8bn. Over the 2015 calendar year discretionary funds under management grew by over £850m through organic growth alone. Part of this growth has been fuelled by the planned movement of advisory clients to discretionary mandates in BMI. This effects income in the current financial year ended 30 June 2016, but it is our stated aim and a positive for the group medium term.

Our investment performance and new business remain strong and this is in spite of highly challenging market conditions".

Enquiries to:

Brooks Macdonald Group plc   Chris Macdonald, Chief Executive   Simon Jackson, Finance Director	www.brooksmacdonald.com 020 7499 6424
Peel Hunt LLP (Nominated Adviser and Broker)   Guy Wiehahn	020 7418 8900
MHP Communications   Reg Hoare / Simon Hockridge / Giles Robinson	020 3128 8100

Notes to editors

Brooks Macdonald Group plc is an AIM listed, integrated, wealth management group. The Group consists of six principal companies: Brooks Macdonald Asset Management  Limited, a discretionary asset management business; Brooks Macdonald Funds Limited, a fund management business; Brooks Macdonald Financial Consulting Limited, a financial advisory and employee benefits consultancy; Brooks Macdonald Asset Management (International) Limited, a Jersey and Guernsey based provider of discretionary investment management and stockbroking; Brooks Macdonald Retirement Services (International) Limited, a Jersey and Guernsey based retirement planning services provider; and Braemar Estates (Residential) Limited, an estate management company.

 

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