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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