REG - Brooks Macdonald Grp - 3rd Quarter FUM Announcement

Brooks MacdonaldAnnouncement

17/04/2024 07:01

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240417:nRSQ8723Ka&default-theme=true

RNS Number : 8723K  Brooks Macdonald Group PLC  17 April 2024

17 April 2024

 

BROOKS MACDONALD GROUP PLC

 

Third Quarter FUM Announcement

 

"FUM up 2.0% in the quarter to £17.9 billion"

 

Brooks Macdonald Group plc ("Brooks Macdonald" or "the Group") today publishes
an update on its Funds under Management ("FUM") for the third quarter of its
financial year, the three months ended 31 March 2024.

Andrew Shepherd, CEO of Brooks Macdonald commented:

 

"Today we report that FUM increased to £17.9 billion over the course of the
quarter as markets responded to the improving macroeconomic outlook. We have
also seen encouraging flows in our Platform MPS and specialist BPS
propositions demonstrating continued demand for our broad product range.

"However, interest rates are still high, placing continuing pressure on our
clients, and we remain focused on meeting their needs through our innovative
solutions and excellent client service.

"I remain confident in our future opportunity, and I want to extend my
appreciation to all our stakeholders for their ongoing support, and to
everyone at BM in particular for their unwavering commitment to our clients."

 

Quarterly FUM update

During the quarter ended 31 March 2024, the Group's closing FUM increased by
2.0% to £17.9 billion (31 December 2023: £17.6 billion).

Gross inflows were robust at £0.5 billion, whilst gross outflows continued to
be elevated given the prevailing macroeconomic backdrop of high interest rates
and inflation, reaching £0.8 billion in Q3.  This resulted in overall net
outflows for the quarter of £0.3 billion or 1.7%. Positive investment
performance in the quarter of £0.6 billion or 3.7%, more than offset net
outflows and contributed to the increased FUM.

Highlights for the quarter included:

·    Platform MPS, including the Group's B2B offering for financial
advisers, BM Investment Solutions ("BMIS"), grew to £4.2 billion with net new
business of 1.7% of opening FUM.

·    BPS experienced net outflows in the quarter of £0.2 billion or 2.3%,
as clients continue to withdraw funds to repay debt or hold higher cash
balances in the current interest rate environment;

·    Within UK BPS, our Decumulation specialised product grew by 9.0% in
the quarter, offering a solution to meet clients' income requirements by
shielding their portfolio from downturn in the early years of withdrawal;

·    Investment performance for the quarter was positive at 3.7%, slightly
below the benchmark(1) which increased by 4.4% in the period, the difference
driven by the predominance of clients of a lower risk profile in our book than
the benchmark and therefore a higher allocation to bonds which underperformed
equities in the quarter;

 

 

Outlook

The outlook for underlying profit for the year remains in line with market
expectations. In the second half, we will continue to realise the cost
benefits of the organisational changes announced in October 2023 while
retaining a focus on operational excellence.

Demand for our products and services remains positive, particularly in our
specialised BPS products and Platform MPS, which is reflected in our gross
inflows. However, given the persistence of current trends in the market and
client behaviour, in line with previous guidance, the Group expects net
outflows for the full year.

The strategic review of the Group's International operations is progressing
and we will communicate the outcome later this year.

 

(1) MSCI PIMFA Private Investor Balanced Index

Analysis of FUM net flows by service over the quarter

 

 Quarter to 31 March 2024 (£m)
                     Opening FUM  Organic net new business  Investment performance in the period  Closing FUM  Organic net new business  Total mvmt

                     1 Jan 24                                                                     31 Mar 24
 BPS                 8,812        (205)                     306                                   8,913        (2.3)%                    1.1%
 MPS Custody         970          (20)                      39                                    989          (2.1)%                    2.0%
 MPS Platform        3,930        65                        169                                   4,164        1.7%                      6.0%
 MPS total           4,900        45                        208                                   5,153        0.9%                      5.2%
 UKIM discretionary  13,712       (160)                     514                                   14,066       (1.2)%                    2.6%
 Funds               1,652        (112)                     47                                    1,587        (6.8)%                    (4.0)%
 UKIM total          15,364       (272)                     561                                   15,653       (1.8%)                    1.9%
 International       2,215        (22)                      81                                    2,274        (1.0)%                    2.7%
 Total               17,579       (294)                     642                                   17,927       (1.7)%                    2.0%

 Total investment performance                                                                                  3.7%
 MSCI PIMFA Private Investor Balanced Index(1)                                                                 4.4%

( )

(1)Capital-only index.

 

Analysis of FUM net flows by service over the nine months

 

 Nine months to 31 March 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         Total YTD  YTD               31 Mar 24    YTD                           YTD
 BPS                 8,527        (98)    (94)       (205)      (397)      783               8,913        (4.7)%                        4.5%
 MPS Custody         966          (14)    (21)       (20)       (55)       78                989          (5.7)%                        2.4%
 MPS Platform        3,489        147     121        65         333        342               4,164        9.5%                          19.3%
 MPS total           4,455        133     100        45         278        420               5,153        6.2%                          15.7%
 UKIM discretionary  12,982       35      6          (160)      (119)      1,203             14,066       (0.9)%                        8.4%
 Funds               1,708        (78)    (71)       (112)      (261)      140               1,587        (15.3)%                       (7.1)%
 UKIM total          14,690       (43)    (65)       (272)      (380)      1,343             15,653       (2.6)%                        6.6%
 International       2,157        (27)    (33)       (22)       (82)       199               2,274        (3.8)%                        5.4%
 Total               16,847       (70)    (98)       (294)      (462)      1,542             17,927       (2.7)%                        6.4%

 Total investment performance                                                                                            9.2%
 MSCI PIMFA Private Investor Balanced Index(1)                                                                           10.3%

 

(1)Capital-only index.

 

 

 

Analysis of FUM gross flows by service over the nine months

 

 Nine months to 31 March 2024
 (£m)
                     Organic gross inflows                   Q3 vs Q2  Organic gross outflows             Q3 vs Q2
                     Q1     Q2     Q3     Total YTD  Inc/(dec) %       Q1      Q2      Q3      Total YTD  Inc/(dec) %
 BPS                 192    173    139    504        (19.7)            (290)   (267)   (344)   (901)      28.8
 MPS Custody         15     15     19     49         26.7              (29)    (36)    (39)    (104)      8.3
 MPS Platform        276    317    282    875        (11.0)            (129)   (196)   (216)   (541)      10.2
 MPS total           291    332    300    924        (9.6)             (158)   (232)   (255)   (645)      9.9
 UKIM discretionary  483    505    439    1,427      (13.1)            (448)   (499)   (599)   (1,546)    20.0
 Funds               55     52     56     163        7.7               (133)   (123)   (169)   (424)      37.4
 UKIM total          538    557    495    1,590      (11.1)            (581)   (622)   (768)   (1,970)    23.5
 International       44     34     38     116        11.8              (71)    (67)    (60)    (198)      (10.4)
 Total               582    591    533    1,706      (9.8)             (652)   (689)   (828)   (2,168)    20.2

 

 

Enquiries to:

 Brooks Macdonald Group plc                                               www.brooksmacdonald.com (http://www.brooksmacdonald.com/)

 Andrew Shepherd, CEO                                                     020 7927 4816

 Andrea Montague, Chief Financial Officer

 Singer Capital Markets (Nominated Adviser and Joint Broker)              020 7496 3000

 Charles Leigh-Pemberton / James Moat

 Investec Bank plc (Joint Broker)                                         020 7597 4000

 Bruce Garrow / David Anderson

 FTI Consulting                  brooksmacdonald@fticonsulting.com (mailto:brooksmacdonald@fticonsulting.com)

 Edward Berry                    07703 330199

 

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 £17.9 billion as at 31 March 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.

 

LEI: 213800WRDF8LB8MIEX37

www.brooksmacdonald.com (http://www.brooksmacdonald.com) / @BrooksMacdonald

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  QRTGPUPPCUPCGMQ