TIDMBRK

RNS Number : 5117V

Brooks Macdonald Group PLC

15 April 2021

15 April 2021

BROOKS MACDONALD GROUP PLC

Quarterly Announcement of Funds under Management

"Positive net flows in UK Investment Management underline continued strategic momentum"

Brooks Macdonald Group plc ("Brooks Macdonald" or the "Group") today publishes a n update on Funds under Management ("FUM") for its third quarter ended 31 March 2021 .

Total FUM increased 0.9% in the quarter, ending the period at GBP15.6 billion (31 December 2020: GBP15.5 billion) as strategic momentum continued to build from the first half. The increase was driven by positive net flows in UK Investment Management ("UKIM"), particularly in the Managed Portfolio Service ("MPS"), as well as further positive investment performance.

-- UKIM had its best quarter of the financial year to date across all its core offerings, delivering net inflows of 0.3%

-- In UKIM discretionary, MPS had strong positive net flows of 7.1%, driven in particular by Investment Solutions and Platform MPS. Bespoke Portfolio Service ("BPS") net flows continued to improve despite the ongoing challenges of operating remotely, with specialist products performing strongly

-- Funds saw net flows of (3.4)%, driven predominantly by the Defensive Capital Fund which continued to reflect negative trends in the Targeted Absolute Return sector, although outflows were lower than in the prior two quarters

-- International experienced increased outflows in the quarter, with net flows of (3.1)%. The reinvigoration of the business and integration of the Lloyds Channel Islands acquisition continued to make progress and medium-term prospects remain positive

-- Q3 investment performance was 1.1%, compared to the benchmark MSCI PIMFA Private Investor Balanced Index at 1.6%. For the financial year to date, investment performance was 10.8%, ahead of the benchmark index which was up 8.2%.

The Group's focus on delivering for intermediaries and clients throughout the pandemic has generated a strong and growing pipeline, and the Group continues to expect total net flows to be modestly positive in H2.

Caroline Connellan, CEO of Brooks Macdonald commented:

"It has been another quarter of delivery against our strategy evidenced by good performance in our core UKIM business, the continued positive trend in overall net flows, and a healthy pipeline. This momentum is testament to our people and I am once again grateful to them for their relentless commitment to delivering for intermediaries and clients in challenging circumstances. We remain on track to achieve full year expectations and we are well positioned to continue delivering sustainable, value-enhancing growth."

Analysis of fund flows by service over the period

 
                                Quarter to 31 March 2021 (GBPm) 
                        Opening     Organic      Investment      Closing      Organic    Total 
                          FUM       net new      performance        FUM       net new     mvmt 
                        1 Jan 21    business    in the period    31 Mar 21    business 
                      ----------  ----------  ---------------  -----------  ----------  ------- 
 BPS                       8,910        (26)              134        9,018      (0.3)%     1.2% 
                      ----------  ----------  ---------------  -----------  ----------  ------- 
 MPS                       1,962         139               28        2,129        7.1%     8.5% 
                      ----------  ----------  ---------------  -----------  ----------  ------- 
 UKIM discretionary       10,872         113              162       11,147        1.0%     2.5% 
                      ----------  ----------  ---------------  -----------  ----------  ------- 
 Funds - DCF                 509        (41)               12          480      (8.1)%   (5.7)% 
                      ----------  ----------  ---------------  -----------  ----------  ------- 
 Funds - Other             1,536        (28)               15        1,523      (1.8)%   (0.8)% 
                      ----------  ----------  ---------------  -----------  ----------  ------- 
 Funds total               2,045        (69)               27        2,003      (3.4)%   (2.1)% 
                      ----------  ----------  ---------------  -----------  ----------  ------- 
 UKIM total               12,917          44              189       13,150        0.3%     1.8% 
                      ----------  ----------  ---------------  -----------  ----------  ------- 
 International             2,586        (79)             (19)        2,488      (3.1)%   (3.8)% 
                      ----------  ----------  ---------------  -----------  ----------  ------- 
 Total                    15,503        (35)              170       15,638      (0.2)%     0.9% 
                      ----------  ----------  ---------------  -----------  ----------  ------- 
 
 Total investment performance                                                              1.1% 
--------------------------------------------------------------------------  ------------------- 
 MSCI PIMFA Private Investor Balanced Index(1)                                             1.6% 
--------------------------------------------------------------------------  ------------------- 
 
 
                                        Nine months to 31 March 2021 (GBPm) 
                   Opening    Organic    Organic    Organic   FUM acquired    Inv.     Closing     Total      Total 
                     FUM      net new    net new    net new      in the       Perf.      FUM      organic      mvmt 
                    1 Jul     business   business   business    period(2)     in the    31 Mar    net new 
                      20         Q1         Q2         Q3                     period      21      business 
                  --------  ----------  ---------  ---------  ------------  --------  --------  ----------  -------- 
 BPS                 8,247       (119)       (43)       (26)             -       959     9,018      (2.3)%      9.3% 
                  --------  ----------  ---------  ---------  ------------  --------  --------  ----------  -------- 
 MPS                 1,809        (81)         40        139             -       222     2,129        5.4%     17.7% 
                  --------  ----------  ---------  ---------  ------------  --------  --------  ----------  -------- 
 UKIM 
  discretionary     10,056       (200)        (3)        113             -     1,181    11,147      (0.9)%   (10.8)% 
                  --------  ----------  ---------  ---------  ------------  --------  --------  ----------  -------- 
 Funds - 
  DCF                  617        (73)       (74)       (41)             -        51       480     (30.5)%   (22.2)% 
                  --------  ----------  ---------  ---------  ------------  --------  --------  ----------  -------- 
 Funds - 
  Other              1,434        (27)       (10)       (28)             -       154     1,523      (4.5)%      6.2% 
                  --------  ----------  ---------  ---------  ------------  --------  --------  ----------  -------- 
 Funds total         2,051       (100)       (84)       (69)             -       205     2,003     (12.3)%    (2.3)% 
                  --------  ----------  ---------  ---------  ------------  --------  --------  ----------  -------- 
 UKIM total         12,107       (300)       (87)         44             -     1,386    13,150      (2.8)%      8.6% 
                  --------  ----------  ---------  ---------  ------------  --------  --------  ----------  -------- 
 International       1,578          39       (19)       (79)           882        87     2,488      (3.7)%     57.7% 
                  --------  ----------  ---------  ---------  ------------  --------  --------  ----------  -------- 
 Total              13,685       (261)      (106)       (35)           882     1,473    15,638      (2.9)%     14.3% 
                  --------  ----------  ---------  ---------  ------------  --------  --------  ----------  -------- 
 
  Total investment performance                                                                                 10.8% 
----------------------------------------------------------------------------------------------  -------------------- 
  MSCI PIMFA Private Investor Balanced Index(1)                                                                 8.2% 
----------------------------------------------------------------------------------------------  -------------------- 
 

(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 
  Caroline Connellan, CEO                                            020 7659 3492 
  Ben Thorpe, Group Finance Director 
 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 GBP15.6 billion as at 31 March 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 twelve offices across the UK and the Channel Islands including London, East Anglia, Hampshire, Leamington Spa, Leeds, Manchester, Taunton, Tunbridge Wells, Scotland, Wales, Jersey and Guernsey.

LEI: 213800WRDF8LB8MIEX37

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