Brooks Macdonald Grp - Quarterly Announcement of Funds under Management
16/10/2024 07:00
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RNS Number : 3176I Brooks Macdonald Group PLC 16 October 2024
Document Title
16 October 2024
BROOKS MACDONALD GROUP PLC
Quarterly Announcement of Funds under Management
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 first quarter of its financial year ending 30 June 2025.
Andrea Montague, CEO of Brooks Macdonald commented:
"Our business has shown resilience through improved client retention across
all our UK propositions.
The considerable speculation around the upcoming Budget and rumoured changes
to taxation and reliefs has clearly had an impact on investor confidence with
lower gross inflows in the quarter.
Our recently announced acquisitions of LIFT and Lucas Fettes demonstrate the
pace at which we are delivering on our strategy, to reignite growth focusing
on client service, reach, scale, and efficiency. I remain confident about
unlocking the full potential of Brooks Macdonald."
Quarterly Announcement of Funds under Management 1 (#_ftn1)
During the first quarter of the financial year, the Group saw net outflows of
£0.1 billion (Q4 FY24: £0.1 billion), representing 0.7% of Funds under
Management, as uncertainty around the Budget led to a reduction in gross
inflows, down 6.0% quarter on quarter.
MPS Platform, including the Group's B2B offering for financial advisers, BM
Investment Solutions ("BMIS"), grew to £4.6 billion (30 June 2024: £4.4
billion) with annualised organic net new business in the quarter of 13.0% of
opening FUM.
Encouragingly, gross outflows were down 5.1% quarter on quarter, marking their
second sequential reduction.
The net outflows were offset by positive investment performance in the quarter
resulting in the Group's closing FUM increasing to £17.9 billion (30 June
2024: £17.8 billion).
Analysis of FUM net flows by service over the quarter (ex DCF)
Quarter to 30 September 2024 (£m)
Opening FUM Organic net new business Investment performance in the period Closing FUM Organic net new business Total mvmt
1 Jul 24 30 Sep 24
BPS 8,880 (176) 131 8,835 (2.0)% (0.5)%
MPS Custody 974 (26) 13 961 (2.7)% (1.3)%
MPS Platform 4,367 142 45 4,554 3.3% 4.3%
MPS total 5,341 116 58 5,515 2.2% 3.3%
Funds 1,323 (51) 14 1,286 (3.9)% (2.8)%
UK total 15,544 (111) 203 15,636 (0.7)% 0.6%
International 2,262 (16) 25 2,271 (0.7)% 0.4%
Total 17,806 (127) 228 17,907 (0.7)% 0.6%
Analysis of FUM gross flows by service over the quarter (ex DCF)
Gross inflows Gross outflows
Q4 Q1 Q1 vs Q4 Q4 Q1 Q1 vs Q4
FY24 FY25 Inc/(Dec) FY24 FY25 Inc/(Dec)
BPS 185 160 (13.5)% (343) (336) 2.0%
MPS Custody 21 14 (33.3)% (46) (40) 13.0%
MPS Platform 325 311 (4.3)% (190) (169) 11.1%
MPS total 346 325 (6.1)% (236) (209) 11.4%
Funds 52 43 (17.3)% (102) (94) 7.8%
UK total 583 528 (9.4)% (681) (639) 6.2%
International 34 52 52.9% (64) (68) (6.3)%
Total 617 580 (6.0)% (745) (707) 5.1%
Enquiries:
Brooks Macdonald Group plc
Andrea Montague, CEO & CFO
Andrea.Montague@brooksmacdonald.com
(mailto:Andrea.Montague@brooksmacdonald.com)
Singer Capital Markets Advisory LLP +44 (0) 20 7496 3000
(Nominated Adviser and Joint Broker)
Charles Leigh-Pemberton/James Moat
Investec Bank plc (Joint Broker) +44 (0)
20 7597 5970
Christopher Baird/David Anderson
FTI Consulting (Media
Enquiries)
Brooksmacdonald@fticonsulting.com (mailto:Brooksmacdonald@fticonsulting.com)
Edward Bery/Katherine
Bell +44 (0) 7703
330199/+44 (0) 7976 870961
About Brooks Macdonald
Brooks Macdonald is one of the UK's leading wealth management firms,
recognised for investment performance and client service. The company offers
leading multi asset investment services to intermediaries and high-quality
financial planning advice to private clients, benefitting from a strong local
presence across the UK.
Brooks Macdonald Group plc was founded in 1991, began trading on AIM in 2005,
and had discretionary FUM of £17.9 billion as of 30 September 2024.
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 (http://www.brooksmacdonald.com) / @BrooksMacdonald
1 (#_ftnref1) All FUM numbers exclude the Defensive Capital Fund ("DCF")
following the announced disposal to RM Capital Markets Limited in September.
During Q1 FY25, DCF recorded net outflow of £94 million and investment
performance of £10 million resulting in closing FUM of £138 million as at 30
September 2024.
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