Quarterly Announcement of FUM and Trading Update
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
|
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
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