Last checked at 13 Jul 2023 07:00
13 July 2023
BROOKS MACDONALD GROUP PLC
Quarterly Announcement of Funds under Management and Trading Update
Notice of Full Year results
"Positive net flows in Q4 leading to full year growth in Group FUM of 7.5%"
Brooks Macdonald Group plc ("Brooks Macdonald" or the "Group") today publishes a trading update and its quarterly announcement of Funds under Management ("FUM") for the fourth quarter of its financial year ended 30 June 2023.
Quarterly Announcement of Funds under Management
The Group recorded positive net flows in the quarter of £0.1bn or 0.6%. This was partly offset by the impact of declining markets, resulting in closing FUM of £16.85bn (31 March 2023: £16.79bn). Highlights in the quarter included:
· UKIM discretionary delivered net inflows in the quarter of £0.2 billion, with overall FUM increasing by 1.5% in the quarter. Platform MPS and, within that, the Group's B2B offering BM Investment Solutions ("BMIS"), had another strong quarter, with combined annualised net flows of 38.0%.
· Investment performance for the quarter was marginally negative at (0.3)%, slightly ahead of the MSCI PIMFA Private Investor Balanced Index.
· Prevailing market conditions and higher interest rates continue to affect investor sentiment with increased trends towards higher cash holdings, debt repayment and investment in money market funds in the short term.
Trading Update
For the financial year ended 30 June 2023, the Group achieved positive net flows of £0.8bn or 5.2%, in line with guidance and ahead of the rate achieved in FY22 of 4.8%. Investment performance contributed £0.4bn, leading to an overall growth in the Group's closing FUM of 7.5% from the start of the financial year (30 June 2022: £15.67bn).
Trading performance in the second half was solid, and the Group anticipates its full year results to be in line with current market expectations.
The pipeline for FY24 is healthy, but we expect to see investor sentiment remaining subdued while markets continue to be uncertain in the near term.
Andrew Shepherd, CEO of Brooks Macdonald commented:
"I am pleased to report another quarter of positive net flows, particularly within our Platform MPS offering, with annualised net flows of 38% in the quarter. Against a backdrop of volatile markets and interest rate rises, our net flows remained positive throughout the year, with the organic FUM growth rate increasing to 5.2% (FY22: 4.8%), contributing to an overall growth in FUM of 7.5%.
"We continue to make steady and encouraging progress against our strategy, led by strong organic growth driven by the value clients place on high quality financial advice. This growth exemplifies the resilience of our organisation and our collective drive to deliver long term sustainable results through the execution of our strategy, underpinned by the unrelenting commitment of our people to our clients and intermediaries."
Analysis of fund flows by service over the period
Quarter to 30 June 2023 (£m) | |||||||
| Opening FUM 1 Apr 23 | Organic net new business | Investment performance in the period | Closing FUM 30 Jun 23 | Organic net new business | Total mvmt |
|
BPS | 8,633 | (76) | (30) | 8,527 | (0.9)% | (1.2)% |
|
MPS Custody | 982 | (17) | 1 | 966 | (1.7)% | (1.6)% |
|
MPS Platform | 3,178 | 302 | 9 | 3,489 | 9.5% | 9.8% |
|
MPS total | 4,160 | 285 | 10 | 4,455 | 6.9% | 7.1% |
|
UKIM discretionary | 12,793 | 209 | (20) | 12,982 | 1.6% | 1.5% |
|
Funds - DCF | 377 | (35) | (4) | 338 | (9.3)% | (10.3)% |
|
Funds - Other | 1,418 | (37) | (11) | 1,370 | (2.6)% | (3.4)% |
|
Funds total | 1,795 | (72) | (15) | 1,708 | (4.0)% | (4.8)% |
|
UKIM total | 14,588 | 137 | (35) | 14,690 | 0.9% | 0.7% |
|
International | 2,206 | (40) | (9) | 2,157 | (1.8)% | (2.2)% |
|
Total | 16,794 | 97 | (44) | 16,847 | 0.6% | 0.3% |
|
| |||||||
Total investment performance | (0.3)% | ||||||
MSCI PIMFA Private Investor Balanced Index1 | (0.5)% | ||||||
Twelve months to 30 June 2023 (£m) |
| ||||||||||
| Opening FUM | Organic net new business
| Total Inv. Perf. | Closing FUM
| Organic net new business | Total mvmt |
| ||||
| 1 Jul 22 | Q1 | Q2 | Q3 | Q4 | Total | FY | 30 Jun 23 | FY | FY |
|
BPS | 8,581 | (6) | (82) | (43) | (76) | (207) | 153 | 8,527 | (2.4)% | (0.6)% |
|
MPS Custody | 960 | (3) | 2 | (7) | (17) | (25) | 31 | 966 | (2.6)% | 0.6% |
|
MPS Platform | 2,053 | 243 | 297 | 505 | 302 | 1,347 | 89 | 3,489 | 65.6% | 69.9% |
|
MPS total | 3,013 | 240 | 299 | 498 | 285 | 1,322 | 120 | 4,455 | 43.9% | 47.9% |
|
UKIM discretionary | 11,594 | 234 | 217 | 455 | 209 | 1,115 | 273 | 12,982 | 9.6% | 12.0% |
|
Funds - DCF | 439 | (14) | (17) | (20) | (35) | (86) | (15) | 338 | (19.6)% | (23.0)% |
|
Funds - Other | 1,418 | (20) | (24) | (14) | (37) | (95) | 47 | 1,370 | (6.7)% | (3.4)% |
|
Funds total | 1,857 | (34) | (41) | (34) | (72) | (181) | 32 | 1,708 | (9.7)% | (8.0)% |
|
UKIM total | 13,451 | 200 | 176 | 421 | 137 | 934 | 305 | 14,690 | 6.9% | 9.2% |
|
International | 2,216 | (9) | (20) | (48) | (40) | (117) | 58 | 2,157 | (5.3)% | (2.7)% |
|
Total | 15,667 | 191 | 156 | 373 | 97 | 817 | 363 | 16,847 | 5.2% | 7.5% |
|
|
| ||||||||||
Total investment performance | 2.3% | ||||||||||
MSCI PIMFA Private Investor Balanced Index1 | 1.6% | ||||||||||
1Capital-only index.
Notice of Full Year results
The Group intends to issue its preliminary statement of full year results for the year ended 30 June 2023 on Thursday 14 September 2023.
Enquiries to:
Brooks Macdonald Group plc Andrew Shepherd, CEO
| www.brooksmacdonald.com 020 7927 4816 |
Peel Hunt LLP (Nominated Adviser and Broker) Paul Shackleton / Andrew Buchanan / John Welch
| 020 7418 8900 |
FTI Consulting Edward Berry / Katherine Bell
| brooksmacdonald@fticonsulting.com 07703 330199 / 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 £16.85 billion as at 30 June 2023.
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