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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