Last checked at 12 Oct 2023 07:00
12 October 2023
BROOKS MACDONALD GROUP PLC
Quarterly Announcement of Funds under Management
"Q1 net flows in line with guidance and FUM up slightly at £16.9bn"
Brooks Macdonald Group plc ("Brooks Macdonald" or "the Group") today publishes an update on its Funds under Management ("FUM") for the first quarter of its financial year, the three months ended 30 September 2023.
During the first quarter of the financial year, the prevailing backdrop of market volatility and high interest rates continued to affect client behaviour, resulting in short term pressure on flows. The Group recorded marginal net outflows of £70 million or 0.4%, in line with guidance. Gross inflows were level with the same period last year, but outflows were higher. This was driven in particular by net outflows of 4.6% in our UK Funds business, consistent with trends across the broader asset management sector.
The net outflows were offset by positive investment performance in the quarter of 0.5% resulting in the Group's closing FUM increasing slightly to £16.9 billion (30 June 2023: £16.8 billion).
Highlights for the quarter included:
· UKIM discretionary FUM increased by 0.6% over the quarter, with positive net flows driven by MPS Platform, which saw an annualised net flow rate of 16.9%.
· Positive investment performance for the quarter resulted in an FUM increase of £0.1 billion or 0.5%, in line with the MSCI PIMFA Private Investor Balanced Index which increased by 0.6% in the period.
The pipeline for FY24 remains robust with continuing strong gross inflows, and positive net flows expected for the full year.
Andrew Shepherd, CEO of Brooks Macdonald commented:
"I am pleased that inflows continue to be robust, and that our core UKIM discretionary business delivered positive net flows, reflecting continuing demand for our products and services. At the overall Group level we saw net outflows, driven by the volatile macroeconomic backdrop and continuing high interest rates, which are leading clients to move towards higher cash holdings, debt repayment and investment in money market funds.
"Our people continue to engage closely with our clients and introducers to help guide them through these difficult markets. In our view, the need for high quality financial advice and robust long-term investment management is now greater than ever. Given that, combined with the supportive demographic trends and the quality and commitment of our people, we remain confident in the Group's ability to deliver our ambitious growth strategy."
Analysis of fund flows by service over the quarter
Quarter to 30 September 2023 (£m) | ||||||
| Opening FUM 1 Jul 23 | Organic net new business | Investment performance in the period | Closing FUM 30 Sep 23 | Organic net new business | Total mvmt |
BPS | 8,527 | (98) | 15 | 8,444 | (1.1)% | (1.0)% |
MPS Custody | 966 | (14) | 5 | 957 | (1.4)% | (0.9)% |
MPS Platform | 3,489 | 147 | 26 | 3,662 | 4.2% | 5.0% |
MPS total | 4,455 | 133 | 31 | 4,619 | 3.0% | 3.7% |
UKIM discretionary | 12,982 | 35 | 46 | 13,063 | 0.3% | 0.6% |
Funds - DCF | 338 | (26) | 5 | 317 | (7.7)% | (6.2)% |
Funds - Other | 1,370 | (52) | 6 | 1,324 | (3.8)% | (3.4)% |
Funds total | 1,708 | (78) | 11 | 1,641 | (4.6)% | (3.9)% |
UKIM total | 14,690 | (43) | 57 | 14,704 | (0.3)% | 0.1% |
International | 2,157 | (27) | 22 | 2,152 | (1.3)% | (0.2)% |
Total | 16,847 | (70) | 79 | 16,856 | (0.4)% | 0.1% |
| ||||||
Total investment performance | 0.5% | |||||
MSCI PIMFA Private Investor Balanced Index1 | 0.6% | |||||
1Capital-only index.
Enquiries to:
Brooks Macdonald Group plc Andrew Shepherd, CEO Andrea Montague, Chief Financial Officer
| 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 wealth 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 £16.9 billion as at 30 September 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