Last checked at 13 Oct 2022 07:00
13 October 2022
BROOKS MACDONALD GROUP PLC
Quarterly Announcement of Funds under Management
"Continued strong positive net flows in Q1"
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 2022.
During the first quarter of the financial year, the Group recorded positive net flows of £0.2 billion, with continued momentum in new business against a backdrop of volatile markets. The further decline in global markets at the end of September offset the positive net flows leading to a 0.9% decrease in the Group's closing FUM to £15.5 billion (30 June 2022: £15.7 billion).
Highlights for the quarter included:
· The Group delivered strong positive net flows, continuing the trend reported in prior quarters and achieving an annualised rate of 4.9%, in line with the previous financial year.
· UKIM discretionary FUM had positive net flows of £0.2 billion (an annualised rate of 8.1%), driven by MPS Platform, which saw an annualised net flow rate of 47.3%. MPS Platform includes the Group's business-to-business offering, BM Investment Solutions.
· Overall investment performance for the quarter recorded a reduction of £0.3 billion or 2.1%, ahead of the MSCI PIMFA Private Investor Balanced Index which declined by 3.6% in the period.
While the pipeline for FY23 remains robust, market conditions are resulting in some clients taking longer to commit funds.
Andrew Shepherd, CEO of Brooks Macdonald commented:
"Despite the difficult political and economic conditions in our first quarter, net flows were running at an annualised 4.9% - an excellent result, continuing the trend seen in the previous financial year.
"Given the challenging backdrop, high quality financial advice and robust long-term investment management are needed now more than ever. Our net flows for this quarter are a credit to everyone at Brooks Macdonald, who engaged actively with our clients and intermediaries to support them in navigating these volatile markets.
"We remain confident in our expectations for new business flows and in the Group's ability to deliver our ambitious growth strategy."
Analysis of fund flows by service over the quarter
Quarter to 30 September 2022 (£m) | ||||||
| Opening FUM 1 Jul 22 | Organic net new business | Investment performance in the period | Closing FUM 30 Sep 22 | Organic net new business | Total mvmt |
BPS | 8,581 | (6) | (231) | 8,344 | (0.1)% | (2.8)% |
MPS Custody | 960 | (3) | (9) | 948 | (0.3)% | (1.2)% |
MPS Platform | 2,053 | 243 | (34) | 2,262 | 11.8% | 10.2% |
MPS total | 3,013 | 240 | (43) | 3,210 | 8.0% | 6.5% |
UKIM discretionary | 11,594 | 234 | (274) | 11,554 | 2.0% | (0.3)% |
Funds - DCF | 439 | (14) | (18) | 407 | (3.2)% | (7.3)% |
Funds - Other | 1,418 | (20) | 6 | 1,404 | (1.4)% | (1.0)% |
Funds total | 1,857 | (34) | (12) | 1,811 | (1.8)% | (2.5)% |
UKIM total | 13,451 | 200 | (286) | 13,365 | 1.5% | (0.6)% |
International | 2,216 | (9) | (48) | 2,159 | (0.4)% | (2.6)% |
Total | 15,667 | 191 | (334) | 15,524 | 1.2% | (0.9)% |
| ||||||
Total investment performance | (2.1)% | |||||
MSCI PIMFA Private Investor Balanced Index1 | (3.6)% | |||||
1Capital-only index.
Enquiries to:
Brooks Macdonald Group plc Andrew Shepherd, CEO Ben Thorpe, CFO
| 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 £15.5 billion as at 30 September 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