Last checked at 13 Jan 2022 07:00
13 January 2022
BROOKS MACDONALD GROUP PLC
Quarterly Announcement of Funds under Management and Half Year Trading Update
Notice of Half Year results
"Growth in FUM to £17.3 billion and net flows up 55% to an annualised rate of 4.7%"
Brooks Macdonald Group plc ("Brooks Macdonald" or "the Group") today publishes an update on its Funds under Management ("FUM") for its second quarter ended 31 December 2021, together with a Trading Update for the half year.
FUM update
Total Group FUM at £17.3 billion (30 September 2021: £16.8 billion; 30 June 2021: £16.5 billion), an overall increase of 3.1% over the quarter and 5.3% over the half year. This reflected increasingly positive net flows, in line with prior guidance, and positive investment performance. Group net flows were up 55% compared to the prior quarter.
Highlights for the quarter included:
· Increasingly positive net flows at the Group level - annualised net flows of 4.7% for the quarter, up from 3.1% for Q1 and (2.0)% for FY21
· Net flows in UKIM Discretionary (ex Funds) of £0.2 bn or 1.7% (6.8% annualised), with both BPS and MPS continuing in positive territory
· Outflows declining in Funds, with Defensive Capital Fund flat on organic flows
· Continued progress in International, returning to positive net flows as previously guided.
Investment performance remained positive, although behind the benchmark index for the quarter. The Group remains confident that client portfolios are well positioned for the medium and longer term.
Trading and outlook
The Group has a healthy pipeline and expects continuing positive net flows, in line with prior guidance.
Underlying profit and underlying profit margin are running ahead of the same period last year and in line with expectations. Reflecting its view that client portfolios were well positioned, the Group maintained a relatively stable asset allocation, resulting in lower than expected transaction-related revenues for the first half. This has been offset by continued strong cost discipline.
The Group continues to make progress in its digital transformation, launching the planned new digital client onboarding solution in the quarter. The transition of all client- and intermediary-facing processes to SS&C's platform is ongoing and will conclude once comprehensive testing has been completed.
Andrew Shepherd, CEO of Brooks Macdonald commented:
"This has been a strong half for Brooks Macdonald, reflective of the momentum we see across the Group. It is especially pleasing to see our International business return to positive net flows, with our new Isle of Man office also coming on stream to support future growth. We have a growing pipeline of new business, our highly talented people are continuing to work hard to improve and develop our service to clients and intermediaries, and we are 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 2021 (£m) | ||||||
Opening FUM 1 Oct 21 | Organic net new business | Investment performance in the period | Closing FUM 31 Dec 21 | Organic net new business | Total mvmt | |
BPS | 9,604 | 51 | 159 | 9,814 | 0.5% | 2.2% |
MPS | 2,618 | 156 | 60 | 2,834 | 6.0% | 8.3% |
UKIM discretionary | 12,222 | 207 | 219 | 12,648 | 1.7% | 3.5% |
Funds - DCF | 478 | 2 | 15 | 495 | 0.4% | 3.6% |
Funds - Other | 1,598 | (23) | 29 | 1,604 | (1.4)% | 0.4% |
Funds total | 2,076 | (21) | 44 | 2,099 | (1.0)% | 1.1% |
UKIM total | 14,298 | 186 | 263 | 14,747 | 1.3% | 3.1% |
International | 2,516 | 12 | 54 | 2,582 | 0.5% | 2.6% |
Total | 16,814 | 198 | 317 | 17,329 | 1.2% | 3.1% |
Total investment performance | 1.9% | |||||
MSCI PIMFA Private Investor Balanced Index1 | 3.8% | |||||
Six months to 31 December 2021 (£m) | |||||||
Opening FUM 1 Jul 21 | Organic net new business Q1 | Organic net new business Q2 | Investment performance in the period | Closing FUM 31 Dec 21 | Total organic net new business | Total mvmt | |
BPS | 9,460 | 6 | 51 | 297 | 9,814 | 0.6% | 3.7% |
MPS | 2,411 | 162 | 156 | 105 | 2,834 | 13.2% | 17.5% |
UKIM discretionary | 11,871 | 168 | 207 | 402 | 12,648 | 3.2% | 6.5% |
Funds - DCF | 478 | (11) | 2 | 26 | 495 | (1.9)% | 3.6% |
Funds - Other | 1,598 | (15) | (23) | 44 | 1,604 | (2.4)% | 0.4% |
Funds total | 2,076 | (26) | (21) | 70 | 2,099 | (2.3)% | 1.1% |
UKIM total | 13,947 | 142 | 186 | 472 | 14,747 | 2.4% | 5.7% |
International | 2,512 | (14) | 12 | 72 | 2,582 | (0.1)% | 2.8% |
Total | 16,459 | 128 | 198 | 544 | 17,329 | 2.0% | 5.3% |
Total investment performance | 3.3% | ||||||
MSCI PIMFA Private Investor Balanced Index1 | 4.0% | ||||||
1Capital-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 2021 on Thursday 10 March 2022.
An analyst meeting will be held at 9.30am on Thursday, 10 March. Please contact Katherine Bell at FTI Consulting on 07976 870961 or e-mail brooksmacdonald@fticonsulting.com 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) Rishi Shah / Andrew Buchanan / John Welch
| 020 7418 8900 |
FTI Consulting Ed Berry / Laura Ewart / Katherine Bell
| brooksmacdonald@fticonsulting.com 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 £17.3 billion as at 31 December 2021.
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 fourteen offices across the UK and Crown Dependencies including London, Cheltenham, East Anglia, Exeter, Leamington Spa, Leeds, Manchester, Southampton, Tunbridge Wells, Scotland, Wales, Jersey, Guernsey and Isle of Man.
LEI: 213800WRDF8LB8MIEX37
www.brooksmacdonald.com / @BrooksMacdonald