REG - Brooks Macdonald Grp - Third Quarter FUMA Update

Brooks MacdonaldAnnouncement

16/04/2025 07:00

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RNS Number : 1801F  Brooks Macdonald Group PLC  16 April 2025

16 April 2025

BROOKS MACDONALD GROUP PLC

Third Quarter FUMA Update

Brooks Macdonald Group plc ("Brooks Macdonald" or the "Group") today announces
flows and funds under management and advice ("FUMA") for the three months
ended 31 March 2025 ("quarter" or "Q3").

 

Andrea Montague, CEO of Brooks Macdonald, commented:

"Since becoming CEO on 1 October, I have led the transformation of Brooks
Macdonald, from the composition of the Group through to the way we work with
our advisers and clients, and I am confident this will deliver improved
performance including net flows.

We are executing our strategy to reignite growth. We have expanded our client
base, strengthened the senior leadership team and broadened our product
offering. The integration of our Financial Planning businesses is progressing
well, and we remain focused on improving asset retention and driving new
business growth.

In these times of geopolitical uncertainty and heightened market volatility,
our investment team continues to monitor financial markets calmly and
objectively and make appropriate adjustments. We are supporting our clients
with frequent, regular market analysis and updates to help them fulfil their
financial objectives.

Our MPS flows continued to grow strongly in the quarter, with 13% annualised
growth YTD, and total net outflows improved by 15% to £129 million (Q2 2025:
net outflows of £151 million).

Our recent move to the Main Market of the London Stock Exchange marks the
start of a new chapter for Brooks Macdonald, as we pursue our strategy to
deliver sustainable value for all our stakeholders."

 

Q3 flows and FUMA

·    Total FUMA increased by 7% to £18.6 billion (31 December 2024:
£17.4 billion, 30 June 2024: £16.4 billion).

-  Of this, total FUM was £16.04 billion (31 December 2024: £15.66 billion,
30 June 2024: £15.54 billion).

-  At the end of quarter, the Group had £2.55 billion (31 December 2024:
£1.73 billion, 30 June 2024: £0.83 billion) of advised only assets,
including £0.81 billion added by LIFT(1).

·    Q3 net outflows of £129 million represent an improvement of £22
million compared with Q2 net outflows of £151 million.

-  Bespoke Portfolio Service ("BPS") net outflows improved by £21 million in
the quarter to £211 million (Q2 2025: net outflows of £232 million). This
reflects lower Core BPS outflows, higher Retirement Income net flows partially
offset by more elevated Gilt outflows, as expected in Q3, as clients settled
their planned tax liabilities.

-  Managed Portfolio Service ("MPS") Platform net inflows of £148 million
continued the strong growth from Q2, delivering YTD annualised growth of 13%.
In addition, the acquisition of LIFT(1) added £788 million of FUM in the
quarter, bringing total MPS Platform FUM to £5.6 billion.

·    The increasingly challenging macroeconomic backdrop reduced FUM by
£273 million. Investment performance over the long term remains strong.

 

Outlook and full-year 2025 results

·    The Group notes the increased market volatility but currently
anticipates its full year performance will be in line with market expectations
and a return to positive net flows later in the year.

·    The fourth quarter FUMA update will be published on 10 July 2025.

·    Results for the year ended 30 June 2025 will be announced on 4
September 2025.

 

Investor enquiries

Brooks Macdonald

Andrea Montague, CEO

Katherine Jones, CFO

Eva Hatfield, Director of Investor
Relations                          +44 (0) 7418 923
061

Email: eva.hatfield@brooksmacdonald.com

 

Media
enquiries

Misha
Bayliss
+44 (0) 20 74275465

Oscar
Burnett
+44 (0) 20 74275435

Email: brooksmacdonald@teneo.com

 

About Brooks Macdonald

Brooks Macdonald Group plc is a leading provider of wealth management services
in the UK.

Proudly serving IFAs and clients since 1991, Brooks Macdonald is
independent, financially strong, and aims to deliver strong and consistent
investment performance for clients to meet their financial objectives. Brooks
Macdonald provides innovative investment solutions to support IFAs and their
clients throughout their entire lives as needs and circumstances change. The
company is recognised as an innovator in the industry having been one of the
first to develop and launch key products such as Managed Portfolio Service.

Realising Ambitions. Securing Futures. We are Brooks Macdonald.

 

Note:

1.   The acquisition of LIFT-Financial Group Ltd and LIFT-Invest (together
"LIFT") completed on 31 January 2025.

 

Net flows by service for the quarter ended 31 March 2025 ( 1 ) (£m)

                            Opening assets  Gross inflows  Gross outflows  Net flows  Acquired  Market and investment performance  Closing assets  Annual growth rate ( 2 )  FUM growth ( 3 )

                            1 Jan 25                                                                                               31 Mar 25
 BPS                        8,682           148            (359)           (211)      -         (153)                              8,318           (9.7)%                    (4.2)%
 MPS Custody                945             13             (40)            (27)       -         (13)                               905             (11.6)%                   (4.1)%
 MPS Platform ( 4 )         4,773           508            (360)           148        788       (100)                              5,609           12.4%                     17.5%
 Total MPS                  5,718           521            (400)           121        788       (113)                              6,514           8.5%                      14.0%
 Funds                      1,258           42             (81)            (39)       -         (7)                                1,212           (12.4)%                   (3.5)%
 Total FUM ( 5 )            15,658          711            (840)           (129)      788       (273)                              16,044          (3.3)%                    2.5%
 Advised only assets ( 6 )  1,726                                                     812                                          2,545
 Total FUMA                 17,384                                                    1,600                                        18,589

 

Net flows by service for the nine months ended 31 March 2025 ( 1 ) (£m)

                            Opening assets  Gross inflows  Gross outflows  Net flows  Acquired  Market and investment performance  Closing assets  Annual growth rate ( 2 )  FUM growth ( 3 )

                            1 Jul 24                                                                                               31 Mar 25
 BPS                        8,880           471            (1,089)         (619)      -         56                                 8,318           (9.3)%                    (6.3)%
 MPS Custody                974             39             (119)           (80)       -         11                                 905             (11.0)%                   (7.1)%
 MPS Platform ( 4 )         4,367           1,136          (700)           436        788       18                                 5,609           13.3%                     28.5%
 Total MPS                  5,341           1,175          (819)           356        788       29                                 6,514           8.9%                      22.0%
 Funds                      1,323           168            (298)           (129)      -         19                                 1,212           (13.1)%                   (8.3)%
 Total FUM ( 5 )            15,544          1,814          (2,206)         (392)      788       104                                16,044          (3.4)%                    3.2%
 Advised only assets ( 6 )  826                                                       1,751                                        2,545
 Total FUMA                 16,370                                                    2,539                                        18,589

 

( 1 ) All FUM numbers exclude Brooks Macdonald International ("BMI") and the
Defensive Capital Fund ("DCF"). The acquisition of BMI by Canaccord Wealth
Genuity completed in February 2025 at which point attributable FUM totalled
£2,272 million. The transfer of the investment management of DCF to RM
Capital Markets Limited completed in November 2024 at which point attributable
FUM totalled £133.5 million.

( 2 ) The annual growth rate is defined as annualised net flows as a
percentage of opening FUM.

( 3 ) FUM growth is defined as the change in FUM over the period as a
percentage of opening FUM.

( 4 ) MPS Platform includes Brooks Macdonald Investment Solutions, the Group's
business to business offering for financial advisers, and the three recently
acquired businesses.

( 5 ) Total FUM includes £2,553 million of assets (31 December 2024: £1,796
million) that are both advised and managed by the Group.

( 6 ) Advised only assets excludes assets under advice which are also invested
and managed in a BM proposition.

 

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.

 

 

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