Last checked at 14 Jan 2021 07:00
14 January 2021
BROOKS MACDONALD GROUP PLC
Quarterly Announcement of Funds under Management and Half Year Trading Update
"Record FUM of £15.5bn, up 13.6% in the quarter. On track to meet full year margin and profit expectations."
Brooks Macdonald Group plc ("Brooks Macdonald" or the "Group") today publishes an update on discretionary Funds under Management ("FUM") for its second quarter ended 31 December 2020, together with a Trading Update for the half year.
Total FUM increased 13.6% in the quarter, ending the period at £15.5 billion (30 September 2020: £13.7 billion). During the half year ended 31 December 2020, total FUM increased by 13.3% (30 June 2020: £13.7 billion). The increase was driven by strong investment performance, an improving trend in net flows, and completion of the acquisition of Lloyds Bank's Channel Islands wealth management and funds business, with its portfolio clients transferring to the Group in line with expectations.
Net flows improved over the half year, with Q2 materially better than Q1. Momentum has continued to build through the quarter into 2021, with a strong new business pipeline despite the uncertainty of the short-term macroeconomic outlook. Highlights for the quarter included:
· In UKIM, MPS net flows turned positive, with organic net new business of 2.3%, while BPS was marginally negative at (0.5)%, leaving total UKIM discretionary broadly flat on an organic basis with overall growth of 8.4% driven by investment performance
· UKIM Funds saw net outflows, largely due to the Defensive Capital Fund which had net flows of (13.5)%, reflecting trends in the Targeted Absolute Return sector
· International net flows were (1.2)%, although showing an improving trend through the quarter.
Investment performance continued to be strong, up 7.9% for the quarter, ahead of the MSCI PIMFA Private Investor Balanced Index which was up 7.0%. For the half year, investment performance was up 9.5%, again ahead of the benchmark index which was up 6.5%.
Revenue, underlying profit and underlying profit margin are all ahead of the same period last year and the Group remains on track to achieve full year expectations.
Caroline Connellan, CEO of Brooks Macdonald commented:
"I am proud of what our people have delivered in the past six months in exceptionally difficult circumstances, with the second quarter particularly encouraging as we reached a record £15.5 billion in FUM. Over the period we built momentum in net flows, delivered strong investment performance, and completed the acquisition of Lloyds' Channel Islands wealth management and funds business.
"The work we have put in over recent years has made Brooks Macdonald a robust business, demonstrated by our strong commercial performance and strategic progress. We are excited about the opportunity we have to continue to make a difference for clients and intermediaries, while also delivering for the Group's shareholders."
Analysis of fund flows by service over the period
Quarter to 31 December 2020 (£m) | |||||||
| Opening FUM 1 Oct 20 | Organic net new business | FUM acquired in the period1 | Investment performance in the period | Closing FUM 31 Dec 20 | Organic net new business | Total mvmt |
BPS | 8,256 | (43) | - | 697 | 8,910 | (0.5)% | 7.9% |
MPS | 1,774 | 40 | - | 148 | 1,962 | 2.3% | 10.6% |
UKIM discretionary | 10,030 | (3) | - | 845 | 10,872 | (0.0)% | 8.4% |
Funds - DCF | 548 | (74) | - | 35 | 509 | (13.5)% | (7.1)% |
Funds - Other | 1,434 | (10) | - | 112 | 1,536 | (0.7)% | 7.1% |
Funds total | 1,982 | (84) | - | 147 | 2,045 | (4.2)% | 3.2% |
UKIM total | 12,012 | (87) | - | 992 | 12,917 | (0.7)% | 7.5% |
International | 1,640 | (19) | 882 | 83 | 2,586 | (1.2)% | 57.7% |
Total | 13,652 | (106) | 882 | 1,075 | 15,503 | (0.8)% | 13.6% |
| |||||||
Total investment performance | 7.9% | ||||||
MSCI PIMFA Private Investor Balanced Index2 | 7.0% | ||||||
Six months to 31 December 2020 (£m) | ||||||||
| Opening FUM 1 Jul 20 | Organic net new business Q1 | Organic net new business Q2 | FUM acquired in the period1 | Investment performance in the period | Closing FUM 31 Dec 20 | Total organic net new business | Total mvmt |
BPS | 8,247 | (119) | (43) | - | 825 | 8,910 | (2.0)% | 8.0% |
MPS | 1,809 | (81) | 40 | - | 194 | 1,962 | (2.3)% | 8.5% |
UKIM discretionary | 10,056 | (200) | (3) | - | 1,019 | 10,872 | (2.0)% | (8.1)% |
Funds - DCF | 617 | (73) | (74) | - | 39 | 509 | (23.8)% | (17.5)% |
Funds - Other | 1,434 | (27) | (10) | - | 139 | 1,536 | (2.6)% | 7.1% |
Funds total | 2,051 | (100) | (84) | - | 178 | 2,045 | (9.0)% | (0.3)% |
UKIM total | 12,107 | (300) | (87) | - | 1,197 | 12,917 | (3.2)% | 6.7% |
International | 1,578 | 39 | (19) | 882 | 106 | 2,586 | 1.3% | 63.9% |
Total | 13,685 | (261) | (106) | 882 | 1,303 | 15,503 | (2.7)% | 13.3% |
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Total investment performance | 9.5% | |||||||
MSCI PIMFA Private Investor Balanced Index2 | 6.5% | |||||||
1Closing FUM of the acquired Lloyds Bank International's Channel Islands wealth management and funds business at the completion date, 30 November 2020.
2Capital-only index.
Enquiries to:
Brooks Macdonald Group plc Caroline Connellan, CEO Ben Thorpe, Group Finance Director
| www.brooksmacdonald.com 020 7659 3492 |
Peel Hunt LLP (Nominated Adviser and Broker) Adrian Trimmings / Rishi Shah / John Welch
| 020 7418 8900 |
MHP Communications Reg Hoare / Simon Hockridge / Charlie Barker
| 020 3128 8540 |
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 £15.5 billion as at 31 December 2020.
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 four regulated OEICs providing a range of onshore and offshore risk-managed multi-asset funds and a specialised absolute return fund.
The Group has twelve offices across the UK and the Channel Islands including London, East Anglia, Hampshire, Leamington Spa, Leeds, Manchester, Taunton, Tunbridge Wells, Scotland, Wales, Jersey and Guernsey.
LEI: 213800WRDF8LB8MIEX37