Quarterly Announcement of Funds under Management

RNS Number : 9285Q

Brooks Macdonald Group PLC

24 October 2019

 

24 October 2019

BROOKS MACDONALD GROUP PLC

Quarterly Announcement of Funds Under Management

Modest FUM growth, continued focus on efficiency, on track to meet full year expectations

Brooks Macdonald Group plc (the "Group"), the AIM listed investment management group, today publishes its quarterly update on discretionary Funds under Management ("FUM") for the first quarter ended 30 September 2019.

As at 30 September 2019 FUM totalled £13.3 billion, an increase of 1.0% over the prior quarter (30 June 2019: £13.1 billion¹).  The Group had total net outflows of £28 million over the period, as conditions remained challenging.

Although both MPS and Funds continued to achieve net inflows during the quarter, BPS recorded net outflows of £53 million, due to the weaker client sentiment in the market and in part to our focus on business quality.  International saw reduced net outflows for the quarter, an initial reflection of the work under way to reinvigorate the business.

During the period, investment performance was £166 million or 1.3%, compared to 2.0% for the MSCI WMA Private Investor Balanced Index, reflecting our prudent defensive investment stance in current markets.  Long-term investment performance remains robust.

On a year-on-year basis, as at 30 September 2019, FUM increased by 4.8% (30 September 2018: £12.7 billion²).

Analysis of discretionary fund flows over the quarter

	Quarter to 30 September 2019
£m	Opening FUM1	Net new business	Performance	Closing FUM	Net new business (%)	Total growth (%)
BPS	8,254	(53)	74	8,275	(0.6)	0.3
MPS	1,705	9	24	1,738	0.5	1.9
UKIM discretionary	9,959	(44)	98	10,013	(0.4)	0.5
Funds	1,584	23	24	1,631	1.5	3.0
UKIM total	11,543	(21)	122	11,645	(0.2)	0.9
International	1,604	(7)	44	1,641	(0.4)	2.3
Total	13,147	(28)	166	13,285	(0.2)	1.0

Caroline Connellan, Chief Executive of Brooks Macdonald commented:

"The prevailing political and macroeconomic backdrop continues to generate market uncertainty and weaker client sentiment.  Notwithstanding this, positive investment returns helped us deliver higher FUM levels and it was also encouraging to see early progress in our International business.

"Although we remain cautious about the short-term outlook, the fundamental opportunity for Brooks Macdonald remains strong and we are well positioned to capture it.  Given the investment we are making in our talent and capabilities, the focus we maintain on efficiency, and our ongoing cost discipline, our expectations for full year profit are unchanged."

¹The Group acts as the promoter and distributor of the Braemar Group PCC Limited-UK Agricultural Land fund ("Agri").  Following shareholder's approval at an EGM held on 14 August 2019, the fund's agricultural assets have been placed on sale and the fund will then be wound up.  Accordingly, the Agri's assets valued at £4 million at 30 June 2019 have been excluded from all figures shown in this announcement.

²As announced on 24 July 2019, the Group exited from its investment management agreement with the Ground Rents Income Fund plc ("GRIF"), a specialised property fund, on 13 May 2019.  Accordingly, comparative FUM figures shown in this announcement have been restated to exclude GRIF's assets.

Enquiries to:

Brooks Macdonald Group plc Caroline Connellan, Chief Executive Ben Thorpe, Group Finance Director	www.brooksmacdonald.com 020 7499 6424
Peel Hunt LLP (Nominated Adviser and Broker) Guy Wiehahn / John Welch	020 7418 8900
MHP Communications Reg Hoare / Simon Hockridge / Charlie Barker	020 3128 8734

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 £13.3 billion as at 30 September 2019.

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 offshore investment management and acts as fund manager to a regulated OEIC providing a range of risk-managed multi-asset funds and a specialised absolute return fund.

The Group has thirteen offices across the UK and the Channel Islands including London, East Anglia, Hampshire, Leamington Spa, Leeds, Manchester, Taunton, Tunbridge Wells, Wales, Scotland, Jersey, and Guernsey.

LEI: 213800WRDF8LB8MIEX37

 

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