Quarterly Announcement of Funds under Management

RNS Number : 5117V
Brooks Macdonald Group PLC
15 April 2021
 

15 April 2021

 

BROOKS MACDONALD GROUP PLC

 

Quarterly Announcement of Funds under Management

 

"Positive net flows in UK Investment Management underline continued strategic momentum"

 

Brooks   Macdonald   Group   plc   ("Brooks Macdonald" or the   "Group")   today   publishes   a n update on Funds under Management ("FUM") for its third quarter ended 31 March 2021 .

Total FUM increased 0.9% in the quarter, ending the period at £15.6 billion (31 December 2020: £15.5 billion) as strategic momentum continued to build from the first half.  The increase was driven by positive net flows in UK Investment Management ("UKIM"), particularly in the Managed Portfolio Service ("MPS"), as well as further positive investment performance.

· UKIM had its best quarter of the financial year to date across all its core offerings, delivering net inflows of 0.3%

· In UKIM discretionary, MPS had strong positive net flows of 7.1%, driven in particular by Investment Solutions and Platform MPS.  Bespoke Portfolio Service ("BPS") net flows continued to improve despite the ongoing challenges of operating remotely, with specialist products performing strongly

· Funds saw net flows of (3.4)%, driven predominantly by the Defensive Capital Fund which continued to reflect negative trends in the Targeted Absolute Return sector, although outflows were lower than in the prior two quarters

· International experienced increased outflows in the quarter, with net flows of (3.1)%.  The reinvigoration of the business and integration of the Lloyds Channel Islands acquisition continued to make progress and medium-term prospects remain positive

· Q3 investment performance was 1.1%, compared to the benchmark MSCI PIMFA Private Investor Balanced Index at 1.6%.  For the financial year to date, investment performance was 10.8%, ahead of the benchmark index which was up 8.2%.

The Group's focus on delivering for intermediaries and clients throughout the pandemic has generated a strong and growing pipeline, and the Group continues to expect total net flows to be modestly positive in H2.

Caroline Connellan, CEO of Brooks Macdonald commented:

"It has been another quarter of delivery against our strategy evidenced by good performance in our core UKIM business, the continued positive trend in overall net flows, and a healthy pipeline.  This momentum is testament to our people and I am once again grateful to them for their relentless commitment to delivering for intermediaries and clients in challenging circumstances.  We remain on track to achieve full year expectations and we are well positioned to continue delivering sustainable, value-enhancing growth."

Analysis of fund flows by service over the period

 

Quarter to 31 March 2021 (£m)


Opening FUM

1 Jan 21

Organic net new business

Investment performance in the period

Closing FUM

31 Mar 21

Organic net new business

Total mvmt

BPS

8,910

(26)

134

9,018

(0.3)%

1.2%

MPS

1,962

139

28

2,129

7.1%

8.5%

UKIM discretionary

10,872

113

162

11,147

1.0%

2.5%

Funds - DCF

509

(41)

12

480

(8.1)%

(5.7)%

Funds - Other

1,536

(28)

15

1,523

(1.8)%

(0.8)%

Funds total

2,045

(69)

27

2,003

(3.4)%

(2.1)%

UKIM total

12,917

44

189

13,150

0.3%

1.8%

International

2,586

(79)

(19)

2,488

(3.1)%

(3.8)%

Total

15,503

(35)

170

15,638

(0.2)%

0.9%


Total investment performance

1.1%

MSCI PIMFA Private Investor Balanced Index1

1.6%

 

Nine months to 31 March 2021 (£m)


Opening FUM

1 Jul 20

Organic net new business Q1

Organic net new business Q2

Organic net new business Q3

FUM acquired in the period2

Inv. Perf.  in the period

Closing FUM

31 Mar 21

Total organic net new business

Total mvmt

BPS

8,247

(119)

(43)

(26)

-

959

9,018

(2.3)%

9.3%

MPS

1,809

(81)

40

139

-

222

2,129

5.4%

17.7%

UKIM

discretionary

10,056

(200)

(3)

113

-

1,181

11,147

(0.9)%

(10.8)%

Funds - DCF

617

(73)

(74)

(41)

-

51

480

(30.5)%

(22.2)%

Funds - Other

1,434

(27)

(10)

(28)

-

154

1,523

(4.5)%

6.2%

Funds total

2,051

(100)

(84)

(69)

-

205

2,003

(12.3)%

(2.3)%

UKIM total

12,107

(300)

(87)

44

-

1,386

13,150

(2.8)%

8.6%

International

1,578

39

(19)

(79)

882

87

2,488

(3.7)%

57.7%

Total

13,685

(261)

(106)

(35)

882

1,473

15,638

(2.9)%

14.3%


Total investment performance

10.8%

MSCI PIMFA Private Investor Balanced Index1

8.2%

 

 

1 Capital-only index.

2 Closing FUM of the acquired Lloyds Bank International's Channel Islands wealth management and funds business at the completion date, 30 November 2020.

 



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)

Rishi Shah / John Welch

 

020 7418 8900

FTI Consulting

Ed 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 £15.6 billion as at 31 March 2021.

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 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

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