17
July 2024
BROOKS MACDONALD GROUP
PLC
Quarterly Announcement of FUM
and Trading Update
Notice of Full Year
results
"FUM up 7.0% over FY24 to
£18.0 billion, with full year results expected to be in line with
market expectations"
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 2024.
Andrew Shepherd, CEO of Brooks Macdonald
commented:
"I am
pleased to report that FUM increased to £18.0 billion. We
remained dedicated to serving our clients in a changing economic
environment. This focus resulted in strong
gross inflows, with high demand for wealth management services that
provide solutions through the entire investor lifecycle. Outflows
have remained elevated but with a more certain political backdrop,
lower inflation and the increased likelihood of a reduction in
interest rates, we anticipate that these will moderate. We will
stay focused on meeting our clients' investment
needs."
Quarterly Announcement of Funds under
Management
The Group recorded net outflows in
the quarter of £0.2 billion, which was an improvement on the prior
quarter, and was more than offset by positive investment
performance, resulting in closing FUM of £18.0 billion (31 March
2024: £17.9 billion).
Highlights in the quarter
included:
·
Group gross inflows in the fourth quarter were
£623 million, the highest of any quarter in the financial year,
reflecting strong client demand for our broad proposition
set.
·
Platform MPS, including the Group's B2B offering
for financial advisers, BM Investment Solutions ("BMIS"), grew to
£4.4 billion (31 March 2024: £4.2 billion) with annualised organic
net new business in the quarter of 13.0% of opening FUM.
·
BPS experienced net outflows in the quarter of
£0.2 billion or 7.1% on an annualised basis (FY24 Q3: £0.2 billion
or 9.6%). BPS gross inflows increased by 33.1% in the fourth
quarter as clients added funds to our specialist
products.
·
Investment performance for the quarter was
relatively strong at 1.4%, ahead of the benchmark1 which increased
by 1.1% in the period.
Full Year Trading Update
For the financial year ended 30 June
2024, the Group experienced net outflows of £0.6 billion or 3.7%,
in line with guidance. Investment performance contributed
£1.8 billion, leading to overall growth in the Group's closing FUM
of 7.0% from the start of the financial year to £18.0 billion (30
June 2023: £16.8 billion).
Trading performance in the second
half was solid, and the Group anticipates its full year results to
be in line with market expectations.
In June 2024, the Group announced
the retirement of Andrew Shepherd as Group CEO and the appointment
of Andrea Montague in this role from 1 October 2024, subject to
regulatory approval.
The Group will report full year
results and the outcome of the strategic review of the
International business on 12 September 2024.
Analysis of FUM net flows by service over the
quarter
|
Quarter to 30 June 2024
(£m)
|
|
|
Opening FUM
1 Apr 24
|
Organic net new
business
|
Investment performance in the
period
|
Closing FUM
30 Jun 24
|
Organic net new
business
|
Total mvmt
|
|
|
BPS
|
8,913
|
(158)
|
125
|
8,880
|
(1.8)%
|
(0.4)%
|
|
|
MPS Custody
|
989
|
(25)
|
10
|
974
|
(2.5)%
|
(1.5)%
|
|
|
MPS Platform
|
4,164
|
135
|
68
|
4,367
|
3.2%
|
4.9%
|
|
|
MPS
total
|
5,153
|
110
|
78
|
5,341
|
2.1%
|
3.6%
|
|
|
UKIM discretionary
|
14,066
|
(48)
|
203
|
14,221
|
(0.3)%
|
1.1%
|
|
|
Funds
|
1,587
|
(76)
|
34
|
1,545
|
(4.8)%
|
(2.6)%
|
|
|
UKIM total
|
15,653
|
(124)
|
237
|
15,766
|
(0.8)%
|
0.7%
|
|
|
International
|
2,274
|
(30)
|
18
|
2,262
|
(1.3)%
|
(0.5)%
|
|
|
Total
|
17,927
|
(154)
|
255
|
18,028
|
(0.9)%
|
0.6%
|
|
|
|
|
Total investment performance
|
1.4%
|
|
MSCI PIMFA Private Investor Balanced
Index1
|
1.1%
|
Analysis of FUM net flows by service over the twelve
months
|
Twelve months to 30 June 2024
(£m)
|
|
|
|
Opening FUM
|
Organic net new
business
|
Total Inv.
Perf.
|
Closing FUM
|
Organic net new
business
|
Total mvmt
|
|
|
|
1 Jul 23
|
Q1
|
Q2
|
Q3
|
Q4
|
Total
|
FY
|
30 Jun 24
|
FY
|
FY
|
|
|
BPS
|
8,527
|
(98)
|
(94)
|
(205)
|
(158)
|
(555)
|
908
|
8,880
|
(6.5)%
|
4.1%
|
|
|
MPS Custody
|
966
|
(14)
|
(21)
|
(20)
|
(25)
|
(80)
|
88
|
974
|
(8.3)%
|
0.8%
|
|
|
MPS Platform
|
3,489
|
147
|
121
|
65
|
135
|
468
|
410
|
4,367
|
13.4%
|
25.2%
|
|
|
MPS
total
|
4,455
|
133
|
100
|
45
|
110
|
388
|
498
|
5,341
|
8.7%
|
19.9%
|
|
|
UKIM discretionary
|
12,982
|
35
|
6
|
(160)
|
(48)
|
(167)
|
1,406
|
14,221
|
(1.3)%
|
9.5%
|
|
|
Funds
|
1,708
|
(78)
|
(71)
|
(112)
|
(76)
|
(337)
|
174
|
1,545
|
(19.7)%
|
(9.5)%
|
|
|
UKIM total
|
14,690
|
(43)
|
(65)
|
(272)
|
(124)
|
(504)
|
1,580
|
15,766
|
(3.4)%
|
7.3%
|
|
|
International
|
2,157
|
(27)
|
(33)
|
(22)
|
(30)
|
(112)
|
217
|
2,262
|
(5.2)%
|
4.9%
|
|
|
Total
|
16,847
|
(70)
|
(98)
|
(294)
|
(154)
|
(616)
|
1,797
|
18,028
|
(3.7)%
|
7.0%
|
|
|
|
|
|
Total investment performance
|
10.7%
|
|
MSCI PIMFA Private Investor Balanced
Index1
|
11.4%
|
1 MSCI PIMFA Private Investor Balanced Index, a capital-only
index.
Analysis of FUM gross flows by service over the twelve
months
|
Twelve months to 30 June 2024
(£m)
|
|
|
Organic gross
inflows
|
Q4 vs Q3
|
Organic gross
outflows
|
Q4 vs Q3
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
Total YTD
|
Inc/(dec)
|
Q1
|
Q2
|
Q3
|
Q4
|
Total YTD
|
Inc/(dec)
|
|
BPS
|
192
|
173
|
139
|
185
|
689
|
33.1%
|
(290)
|
(267)
|
(344)
|
(343)
|
(1,244)
|
(0.3)%
|
|
MPS Custody
|
15
|
15
|
19
|
21
|
70
|
10.5%
|
(29)
|
(36)
|
(39)
|
(46)
|
(150)
|
17.9%
|
|
MPS Platform
|
276
|
317
|
281
|
325
|
1,199
|
15.7%
|
(129)
|
(196)
|
(216)
|
(190)
|
(731)
|
(12.0)%
|
|
MPS
total
|
291
|
332
|
300
|
346
|
1,269
|
15.3%
|
(158)
|
(232)
|
(255)
|
(236)
|
(881)
|
(7.5)%
|
|
UKIM discretionary
|
483
|
505
|
439
|
531
|
1,958
|
21.0%
|
(448)
|
(499)
|
(599)
|
(579)
|
(2,125)
|
(3.3)%
|
|
Funds
|
55
|
52
|
57
|
58
|
222
|
1.8%
|
(133)
|
(123)
|
(169)
|
(134)
|
(559)
|
(20.7)%
|
|
UKIM total
|
538
|
557
|
496
|
589
|
2,180
|
18.8%
|
(581)
|
(622)
|
(768)
|
(713)
|
(2,684)
|
(7.2)%
|
|
International
|
44
|
34
|
38
|
34
|
150
|
(10.5)%
|
(71)
|
(67)
|
(60)
|
(64)
|
(262)
|
6.7%
|
|
Total
|
582
|
591
|
534
|
623
|
2,330
|
16.7%
|
(652)
|
(689)
|
(828)
|
(777)
|
(2,946)
|
(6.2)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Notice of Full Year results
The Group intends to announce its
results for the year ended 30 June 2024 on Thursday 12 September
2024.
Enquiries to:
|
Brooks Macdonald Group plc
Andrew Shepherd, CEO
Andrea Montague, Chief Financial
Officer
|
www.brooksmacdonald.com
020 7927 4816
|
|
Singer Capital Markets (Nominated Adviser and Joint
Broker)
Charles Leigh-Pemberton / James
Moat
|
020 7496
3000
|
|
Investec Bank plc (Joint Broker)
Chris Baird / David
Anderson
|
020 7597
5970
|
|
FTI
Consulting
Katie Bell
|
brooksmacdonald@fticonsulting.com
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 £18.0 billion as
at 30 June 2024.
Brooks Macdonald offers outsourced
discretionary investment management for intermediaries and
advice-led integrated wealth management for private clients. The
Group also 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,
East Anglia, Exeter, Leeds, Manchester, Nuneaton, Southampton,
Tunbridge Wells, Scotland, Wales, Jersey, Guernsey and Isle of
Man.
Forward-looking statements
This announcement may include
statements, beliefs or opinions that are, or may be deemed to be,
"forward-looking statements". These forward-looking statements may
be identified by the use of forward-looking terminology, including
the terms "believes", "estimates", "plans", "projects",
"anticipates", "targets", "aims", "continues", "expects",
"intends", "hopes", "may", "will", "would", "could" or "should" or,
in each case, their negative or other variations or comparable
terminology, or by discussions of strategy, plans, objectives,
goals, future events or intentions. No representation or warranty
is made that any of these statements or forecasts will come to pass
or that any forecast results will be achieved. Forward-looking
statements may and often do differ materially from actual results.
Any forward-looking statements contained in the announcement speak
only as of their respective dates, reflect Brooks Macdonald's
current view with respect to future events and are subject to risks
relating to future events and other risks, uncertainties and
assumptions relating to Brooks Macdonald's business, results of
operations, financial position, liquidity, prospects, growth and
strategies.
Except as required by any applicable
law or regulation, Brooks Macdonald expressly disclaims any
obligation or undertaking to release publicly any updates or
revisions to any forward-looking statements contained in this
announcement or any other forward-looking statements it may make
whether as a result of new information, future developments or
otherwise.
LEI:
213800WRDF8LB8MIEX37
www.brooksmacdonald.com
/ @BrooksMacdonald