Last checked at 14 Jul 2022 07:00
14 July 2022
BROOKS MACDONALD GROUP PLC
Trading Update and Quarterly Announcement of Funds under Management
Notice of Full Year results
"Strong positive net flows in Q4, up to an annualised rate of 6.7%"
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 2022.
Trading Update
The Group had a positive fourth quarter, benefiting from its strong client and intermediary relationships and resilient business model. The Group anticipates full year results in line with market expectations, adjusted for recent market movements.
While the pipeline for FY23 is strong, conversion times continue to be affected by ongoing market uncertainty.
Quarterly Announcement of Funds under Management
The Group recorded positive net flows in the quarter of £0.3bn or 1.7%, an annualised rate of 6.7%. This was offset by declining global markets, resulting in an overall 5.9% reduction in the Group's closing FUM to £15.7bn (31 March 2022: £16.7bn). Highlights in the quarter included:
· UKIM Discretionary delivered net inflows in the quarter of £0.3 billion, corresponding to annualised net flows of 10.8%. Platform MPS and BMIS continued to build momentum, with combined annualised net flows of 45.6% for the quarter.
· Investment performance for the quarter delivered an FUM reduction of £1.3bn or 7.6%, in line with the MSCI PIMFA Private Investor Balanced Index.
During the financial year ended 30 June 2022, the Group achieved positive net flows of £0.8bn or 4.8%, representing an upswing of £1.1bn from the net flows recorded in FY21. This was offset by the market downturn, leading to an overall decrease in the Group's closing FUM of 4.8% from the start of the financial year (30 June 2021: £16.5bn).
Andrew Shepherd, CEO of Brooks Macdonald commented:
"I am delighted to report our fifth consecutive quarter of positive net flows, bringing our net flows rate up to 6.7% on an annualised basis. This demonstrates sustained momentum and the robustness of our business model. Against the backdrop of declining markets, it is more important than ever to stay connected with our clients and intermediaries, and I am proud of how our people have made a difference for them and helped deliver such strong results."
Analysis of fund flows by service over the period
Quarter to 30 June 2022 (£m) | ||||||
| Opening FUM 1 Apr 22 | Organic net new business | Investment performance in the period | Closing FUM 30 Jun 22 | Organic net new business | Total mvmt |
BPS | 9,325 | 1 | (745) | 8,581 | -% | (8.0)% |
MPS | 2,895 | 330 | (212) | 3,013 | 11.4% | 4.1% |
UKIM discretionary | 12,220 | 331 | (957) | 11,594 | 2.7% | (5.1)% |
Funds - DCF | 484 | (22) | (23) | 439 | (4.5)% | (9.3)% |
Funds - Other | 1,528 | (3) | (107) | 1,418 | (0.2)% | (7.2)% |
Funds total | 2,012 | (25) | (130) | 1,857 | (1.2)% | (7.7)% |
UKIM total | 14,232 | 306 | (1,087) | 13,451 | 2.2% | (5.5)% |
International | 2,426 | (26) | (184) | 2,216 | (1.1)% | (8.7)% |
Total | 16,658 | 280 | (1,271) | 15,667 | 1.7% | (5.9)% |
| ||||||
Total investment performance | (7.6)% | |||||
MSCI PIMFA Private Investor Balanced Index1 | (7.4)% | |||||
Twelve months to 30 June 2022 (£m) | ||||||||||
| Opening FUM | Organic net new business | Total Inv. Perf. | Closing FUM | Total organic net new business | Total mvmt | ||||
1 Jul 21 | Q1 | Q2 | Q3 | Q4 | Total | 30 Jun 22 | ||||
BPS | 9,460 | 6 | 51 | 30 | 1 | 88 | (967) | 8,581 | 0.9% | (9.3)% |
MPS | 2,411 | 162 | 156 | 181 | 330 | 829 | (227) | 3,013 | 34.4% | 25.0% |
UKIM discretionary | 11,871 | 168 | 207 | 211 | 331 | 917 | (1,194) | 11,594 | 7.7% | (2.3)% |
Funds - DCF | 478 | (11) | 2 | (15) | (22) | (46) | 7 | 439 | (9.6)% | (8.2)% |
Funds - Other | 1,598 | (15) | (23) | (20) | (3) | (60) | (120) | 1,418 | (3.8)% | (11.3)% |
Funds total | 2,076 | (26) | (21) | (35) | (25) | (106) | (113) | 1,857 | (5.1)% | (10.6)% |
UKIM total | 13,947 | 142 | 186 | 176 | 306 | 810 | (1,307) | 13,451 | 5.8% | 3.6% |
International | 2,512 | (14) | 12 | 3 | (26) | (25) | (271) | 2,216 | (1.0)% | (11.8)% |
Total | 16,459 | 128 | 198 | 179 | 280 | 785 | (1,578) | 15,667 | 4.8% | (4.8)% |
| ||||||||||
Total investment performance | (9.6)% | |||||||||
MSCI PIMFA Private Investor Balanced Index1 | (6.3)% | |||||||||
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 2022 on Thursday 15 September 2022.
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) Paul Shackleton / Andrew Buchanan / John Welch
| 020 7418 8900 |
FTI Consulting Edward 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 £15.7 billion as at 30 June 2022.
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, Birmingham, Cheltenham, East Anglia, Exeter, Leeds, Manchester, Southampton, Tunbridge Wells, Scotland, Wales, Jersey, Guernsey and Isle of Man.
LEI: 213800WRDF8LB8MIEX37
www.brooksmacdonald.com / @BrooksMacdonald