TIDMBRK

RNS Number : 2742Y

Brooks Macdonald Group PLC

13 January 2022

13 January 2022

BROOKS MACDONALD GROUP PLC

Quarterly Announcement of Funds under Management and Half Year Trading Update

Notice of Half Year results

"Growth in FUM to GBP17.3 billion and net flows up 55% to an annualised rate of 4.7%"

Brooks Macdonald Group plc ("Brooks Macdonald" or "the Group") today publishes an update on its Funds under Management ("FUM") for its second quarter ended 31 December 2021, together with a Trading Update for the half year .

FUM update

Total Group FUM at GBP17.3 billion (30 September 2021: GBP16.8 billion; 30 June 2021: GBP16.5 billion), an overall increase of 3.1% over the quarter and 5.3% over the half year. This reflected increasingly positive net flows, in line with prior guidance, and positive investment performance. Group net flows were up 55% compared to the prior quarter.

Highlights for the quarter included:

-- Increasingly positive net flows at the Group level - annualised net flows of 4.7% for the quarter, up from 3.1% for Q1 and (2.0)% for FY21

-- Net flows in UKIM Discretionary (ex Funds) of GBP0.2 bn or 1.7% (6.8% annualised), with both BPS and MPS continuing in positive territory

   --    Outflows declining in Funds, with Defensive Capital Fund flat on organic flows 
   --    Continued progress in International, returning to positive net flows as previously guided. 

Investment performance remained positive, although behind the benchmark index for the quarter. The Group remains confident that client portfolios are well positioned for the medium and longer term.

Trading and outlook

The Group has a healthy pipeline and expects continuing positive net flows, in line with prior guidance.

Underlying profit and underlying profit margin are running ahead of the same period last year and in line with expectations. Reflecting its view that client portfolios were well positioned, the Group maintained a relatively stable asset allocation, resulting in lower than expected transaction-related revenues for the first half. This has been offset by continued strong cost discipline.

The Group continues to make progress in its digital transformation, launching the planned new digital client onboarding solution in the quarter. The transition of all client- and intermediary-facing processes to SS&C's platform is ongoing and will conclude once comprehensive testing has been completed.

Andrew Shepherd, CEO of Brooks Macdonald commented:

" This has been a strong half for Brooks Macdonald, reflective of the momentum we see across the Group. It is especially pleasing to see our International business return to positive net flows, with our new Isle of Man office also coming on stream to support future growth. We have a growing pipeline of new business, our highly talented people are continuing to work hard to improve and develop our service to clients and intermediaries, and we are in a strong position to take advantage of the great opportunities ahead for Brooks Macdonald."

Analysis of fund flows by service over the period

 
                              Quarter to 31 December 2021 (GBPm) 
                        Opening     Organic      Investment      Closing      Organic    Total 
                          FUM       net new      performance        FUM       net new     mvmt 
                        1 Oct 21    business    in the period    31 Dec 21    business 
                      ----------  ----------  ---------------  -----------  ----------  ------ 
 BPS                       9,604          51              159        9,814        0.5%    2.2% 
                      ----------  ----------  ---------------  -----------  ----------  ------ 
 MPS                       2,618         156               60        2,834        6.0%    8.3% 
                      ----------  ----------  ---------------  -----------  ----------  ------ 
 UKIM discretionary       12,222         207              219       12,648        1.7%    3.5% 
                      ----------  ----------  ---------------  -----------  ----------  ------ 
 Funds - DCF                 478           2               15          495        0.4%    3.6% 
                      ----------  ----------  ---------------  -----------  ----------  ------ 
 Funds - Other             1,598        (23)               29        1,604      (1.4)%    0.4% 
                      ----------  ----------  ---------------  -----------  ----------  ------ 
 Funds total               2,076        (21)               44        2,099      (1.0)%    1.1% 
                      ----------  ----------  ---------------  -----------  ----------  ------ 
 UKIM total               14,298         186              263       14,747        1.3%    3.1% 
                      ----------  ----------  ---------------  -----------  ----------  ------ 
 International             2,516          12               54        2,582        0.5%    2.6% 
                      ----------  ----------  ---------------  -----------  ----------  ------ 
 Total                    16,814         198              317       17,329        1.2%    3.1% 
                      ----------  ----------  ---------------  -----------  ----------  ------ 
 
 Total investment performance                                                             1.9% 
--------------------------------------------------------------------------  ------------------ 
 MSCI PIMFA Private Investor Balanced Index(1)                                            3.8% 
--------------------------------------------------------------------------  ------------------ 
 
 
                                 Six months to 31 December 2021 (GBPm) 
                       Opening    Organic    Organic      Investment      Closing       Total     Total 
                         FUM      net new    net new      performance        FUM       organic     mvmt 
                        1 Jul     business   business    in the period    31 Dec 21    net new 
                          21         Q1         Q2                                     business 
                      --------  ----------  ---------  ---------------  -----------  ----------  ------ 
 BPS                     9,460           6         51              297        9,814        0.6%    3.7% 
                      --------  ----------  ---------  ---------------  -----------  ----------  ------ 
 MPS                     2,411         162        156              105        2,834       13.2%   17.5% 
                      --------  ----------  ---------  ---------------  -----------  ----------  ------ 
 UKIM discretionary     11,871         168        207              402       12,648        3.2%    6.5% 
                      --------  ----------  ---------  ---------------  -----------  ----------  ------ 
 Funds - DCF               478        (11)          2               26          495      (1.9)%    3.6% 
                      --------  ----------  ---------  ---------------  -----------  ----------  ------ 
 Funds - Other           1,598        (15)       (23)               44        1,604      (2.4)%    0.4% 
                      --------  ----------  ---------  ---------------  -----------  ----------  ------ 
 Funds total             2,076        (26)       (21)               70        2,099      (2.3)%    1.1% 
                      --------  ----------  ---------  ---------------  -----------  ----------  ------ 
 UKIM total             13,947         142        186              472       14,747        2.4%    5.7% 
                      --------  ----------  ---------  ---------------  -----------  ----------  ------ 
 International           2,512        (14)         12               72        2,582      (0.1)%    2.8% 
                      --------  ----------  ---------  ---------------  -----------  ----------  ------ 
 Total                  16,459         128        198              544       17,329        2.0%    5.3% 
                      --------  ----------  ---------  ---------------  -----------  ----------  ------ 
 
Total investment performance                                                                       3.3% 
-----------------------------------------------------------------------------------  ------------------ 
MSCI PIMFA Private Investor Balanced Index(1)                                                      4.0% 
-----------------------------------------------------------------------------------  ------------------ 
 

(1) Capital-only index.

Notice of Half Year results

The Group intends to issue its preliminary statement of half year results for the period ended 31 December 2021 on Thursday 10 March 2022.

An analyst meeting will be held at 9.30am on Thursday, 10 March. Please contact Katherine Bell at FTI Consulting on 07976 870961 or e-mail brooksmacdonald@fticonsulting.com for further details.

Enquiries to:

 
 Brooks Macdonald Group plc                                www.brooksmacdonald.com 
  Andrew Shepherd, CEO                                               020 7659 3492 
  Ben Thorpe, Chief Financial Officer 
 Peel Hunt LLP (Nominated Adviser and Broker) 
  Rishi Shah / Andrew Buchanan / 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 GBP17.3 billion as at 31 December 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 fourteen offices across the UK and Crown Dependencies including London, Cheltenham, East Anglia, Exeter, Leamington Spa, Leeds, Manchester, Southampton, Tunbridge Wells, Scotland, Wales, Jersey, Guernsey and Isle of Man.

LEI: 213800WRDF8LB8MIEX37

www.brooksmacdonald.com / @BrooksMacdonald

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