TIDMBRK
RNS Number : 2843F
Brooks Macdonald Group PLC
15 July 2021
15 July 2021
BROOKS MACDONALD GROUP PLC
Quarterly Trading Update and Announcement of Funds under
Management
"Growing momentum with a return to positive net flows"
Brooks Macdonald Group plc ("Brooks Macdonald" or "the Group")
today publishes a Trading Update and announces its Funds under
Management ("FUM") for the fourth quarter of its financial year
(ended 30 June 2021).
Trading Update
The Group had a positive fourth quarter, benefiting from its
strong client and intermediary relationships combined with
continued robust investment performance. The Group anticipates a
full year result in line with market expectations and previous
guidance.
Funds under Management
Total Group FUM finished the quarter at a record GBP16.5 billion
(31 March 2021: GBP15.6 billion), an overall increase of 5.3% in
the quarter and 20.3% compared to the FY20 close (30 June 2020:
GBP13.7 billion).
The increase in the quarter was driven by both strong investment
performance (adding GBP0.7 billion), and a return to positive net
flows (GBP0.1 billion), as per previous guidance. Every month in
the quarter had positive net flows at Group level with June having
the strongest monthly figure, underscoring the growing momentum
behind the business and its strategy.
Highlights for the fourth quarter included:
-- Overall investment performance for the period was robust at
4.4%, in line with the MSCI PIMFA Private Investor Balanced Index
which was up by 4.3%.
-- UKIM discretionary FUM had strongly positive net flows of
GBP0.2 billion, an annualised rate of 7.6%. Within that:
- Net flows in the Bespoke Portfolio Service ("BPS") returned to
positive territory at GBP28 million, driven in particular by our
specialist products (Responsible Investment Service, Decumulation,
AIM Portfolio Service, and Court of Protection); and
- The Managed Portfolio Service ("MPS") had net flows of GBP184
million, driven by a number of Investment Solutions mandates.
-- Flows in the UKIM Funds business were broadly flat. Outflows
in the Defensive Capital Fund slowed materially with a small net
positive result in June.
-- The International business recorded net outflows during the
quarter of GBP73 million, primarily reflecting the previously
disclosed loss of a low-yielding mandate.
Over the course of the full financial year, FUM increased by
GBP2.8 billion (20.3%). This reflects the Channel Islands wealth
management assets acquired from Lloyds Banking Group in November
2020 of GBP0.9 billion in combination with positive investment
performance of GBP2.2 billion, partly offset by organic net
outflows of GBP0.3 billion.
Overall investment performance for the financial year to June
was 15.8%, well ahead of the MSCI PIMFA Private Investor Balanced
Index which rose by 12.9% over the same period.
Andrew Shepherd, CEO designate of Brooks Macdonald
commented:
"I'm pleased to see Brooks Macdonald returning to positive net
flows and I'm hugely excited by the opportunity before us. We've
put in an enormous amount of effort over the last few years to
build the foundations for the future success of the Group and I'm
delighted with the progress we've made.
"We move ahead with confidence because of the talent and
commitment of the people who work here. I'm deeply impressed by how
everyone has pulled together to deliver strong results during an
especially challenging time. We maintained high quality service to
our clients and intermediaries and delivered robust investment
performance, well ahead of the relevant index over the year. We
have a great team in place and an exciting future ahead."
Analysis of fund flows by service over the period
Quarter to 30 June 2021 (GBPm)
Opening Organic Investment Closing Organic Total
FUM net new performance FUM net new mvmt
1 Apr 21 business in the period 30 Jun 21 business
---------- ---------- --------------- ----------- ---------- -------
BPS 9,018 28 414 9,460 0.3% 4.9%
---------- ---------- --------------- ----------- ---------- -------
MPS 2,129 184 98 2,411 8.6% 13.2%
---------- ---------- --------------- ----------- ---------- -------
UKIM discretionary 11,147 212 512 11,871 1.9% 6.5%
---------- ---------- --------------- ----------- ---------- -------
Funds - DCF 480 (18) 16 478 (3.8)% (0.4)%
---------- ---------- --------------- ----------- ---------- -------
Funds - Other 1,523 6 69 1,598 0.4% 4.9%
---------- ---------- --------------- ----------- ---------- -------
Funds total 2,003 (12) 85 2,076 (0.6)% 3.6%
---------- ---------- --------------- ----------- ---------- -------
UKIM total 13,150 200 597 13,947 1.5% 6.1%
---------- ---------- --------------- ----------- ---------- -------
International 2,488 (73) 97 2,512 (2.9)% 1.0%
---------- ---------- --------------- ----------- ---------- -------
Total 15,638 127 694 16,459 0.8% 5.3%
---------- ---------- --------------- ----------- ---------- -------
Total investment performance 4.4%
-------------------------------------------------------------------------- -------------------
MSCI PIMFA Private Investor Balanced Index(1) 4.3%
-------------------------------------------------------------------------- -------------------
Six months to 30 June 2021 (GBPm)
Opening Organic Investment Closing Organic Total
FUM net new performance FUM net new mvmt
1 Jan 21 business in the period 30 Jun 21 business
---------- ---------- --------------- ----------- ---------- -------
BPS 8,910 2 548 9,460 0.0% 6.2%
---------- ---------- --------------- ----------- ---------- -------
MPS 1,962 323 126 2,411 16.5% 22.9%
---------- ---------- --------------- ----------- ---------- -------
UKIM discretionary 10,872 325 674 11,871 3.0% 9.2%
---------- ---------- --------------- ----------- ---------- -------
Funds - DCF 509 (59) 28 478 (11.6)% (6.1)%
---------- ---------- --------------- ----------- ---------- -------
Funds - Other 1,536 (22) 84 1,598 (1.4)% 4.0%
---------- ---------- --------------- ----------- ---------- -------
Funds total 2,045 (81) 112 2,076 (4.0)% 1.5%
---------- ---------- --------------- ----------- ---------- -------
UKIM total 12,917 244 786 13,947 1.9% 8.0%
---------- ---------- --------------- ----------- ---------- -------
International 2,586 (152) 78 2,512 (5.9)% (2.9)%
---------- ---------- --------------- ----------- ---------- -------
Total 15,503 92 864 16,459 0.6% 6.2%
---------- ---------- --------------- ----------- ---------- -------
Total investment performance 5.6%
-------------------------------------------------------------------------- -------------------
MSCI PIMFA Private Investor Balanced Index(1) 6.0%
-------------------------------------------------------------------------- -------------------
Full Year to 30 June 2021 (GBPm)
FUM Inv. Total
Opening Organic net new business acquired Perf. Closing organic
FUM in the in FUM net new
year(2) the business
year
----------------------------------- --------- ------- ---------- --------
1 Jul Q1 Q2 Q3 Q4 Total 30 Jun Total
20 21 mvmt
---------- ------- ------ ----- ---- ----- --------- ------- ---------- ---------- --------
BPS 8,247 (119) (43) (26) 28 (160) - 1,373 9,460 (1.9)% 14.7%
---------- ------- ------ ----- ---- ----- --------- ------- ---------- ---------- --------
MPS 1,809 (81) 40 139 184 282 - 320 2,411 15.6% 33.3%
---------- ------- ------ ----- ---- ----- --------- ------- ---------- ---------- --------
UKIM
discretionary 10,056 (200) (3) 113 212 122 - 1,693 11,871 1.2% 18.0%
---------- ------- ------ ----- ---- ----- --------- ------- ---------- ---------- --------
Funds -
DCF 617 (73) (74) (41) (18) (206) - 67 478 (33.4)% (22.5)%
---------- ------- ------ ----- ---- ----- --------- ------- ---------- ---------- --------
Funds -
Other 1,434 (27) (10) (28) 6 (59) - 223 1,598 (4.1)% 11.4%
---------- ------- ------ ----- ---- ----- --------- ------- ---------- ---------- --------
Funds total 2,051 (100) (84) (69) (12) (265) - 290 2,076 (12.9)% 1.2%
---------- ------- ------ ----- ---- ----- --------- ------- ---------- ---------- --------
UKIM total 12,107 (300) (87) 44 200 (143) - 1,983 13,947 (1.2)% 15.2%
---------- ------- ------ ----- ---- ----- --------- ------- ---------- ---------- --------
International 1,578 39 (19) (79) (73) (132) 882 184 2,512 (8.4)% 59.2%
---------- ------- ------ ----- ---- ----- --------- ------- ---------- ---------- --------
Total 13,685 (261) (106) (35) 127 (275) 882 2,167 16,459 (2.0)% 20.3%
---------- ------- ------ ----- ---- ----- --------- ------- ---------- ---------- --------
Total investment performance 15.8%
------------------------------------------------------------------------------------------------ --------------------
MSCI PIMFA Private Investor Balanced Index(1) 12.9%
------------------------------------------------------------------------------------------------ --------------------
(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 www.brooksmacdonald.com
Andrew Shepherd, Group CEO designate 020 7659 3492
Ben Thorpe, Chief Financial Officer
Peel Hunt LLP (Nominated Adviser and Broker)
Rishi Shah / John Welch 020 7418 8900
FTI Consulting brooksmacdonald@fticonsulting.com
Ed Berry / Laura Ewart / Katherine Bell 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
GBP16.5 billion as at 30 June 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 thirteen offices across the UK and the Channel
Islands including London, Cheltenham, East Anglia, Exeter,
Hampshire, Leamington Spa, Leeds, Manchester, Tunbridge Wells,
Scotland, Wales, Jersey and Guernsey.
LEI: 213800WRDF8LB8MIEX37
www.brooksmacdonald.com / @BrooksMacdonald
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