AI Terminal
BROOKS MACDONALD GROUP PLC
Earnings Release • Jan 12, 2023
7534_rns_2023-01-12_f23a51e6-b953-4e74-8ebe-1886a2e95369.html
Earnings Release
Open in ViewerOpens in native device viewer
National Storage Mechanism | Additional information 
RNS Number : 4569M
Brooks Macdonald Group PLC
12 January 2023
12 January 2023
BROOKS MACDONALD GROUP PLC
Quarterly Announcement of Funds under Management and Half Year Trading Update
Notice of Half Year results
"FUM up 4.5% to £16.2 billion with net flows at an annualised 4.0% for the quarter"
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 2022, together with a Trading Update for the half year.
FUM update
For the quarter ended 31 December 2022, the Group's FUM was up 4.5% with net inflows of £0.2 billion (an annualised rate of 4.0%), reflecting continued momentum in new business, and positive investment performance of £0.5 billion, leading to a closing FUM of £16.2 billion (30 September 2022: £15.5 billion).
Highlights for the quarter included:
· Within UKIM, Platform MPS (including BM Investment Solutions) continued to gain market share, recording strong net flows in the period (annualised rate of 52.5%), and has a robust pipeline;
· UK BPS experienced net outflows in the quarter due primarily to continued economic uncertainty making clients more cautious and therefore taking longer to commit funds;
· The Group completed two acquisitions in the quarter - Integrity Wealth Solutions and Adroit Financial Planning - demonstrating its ability to identify and integrate high quality businesses that build capability and broaden the offering;
· Investment performance for the quarter was 3.5%, in line with the benchmark MSCI PIMFA Private Investor Balanced Index.
Trading update
The Group traded solidly in the first half, despite the difficult prevailing macroeconomic environment and market conditions, and underlying profit and underlying profit margin (year to date and full year forecast) are running in line with current market expectations.
Andrew Shepherd, CEO of Brooks Macdonald commented:
"I am pleased to report that we have delivered c.£350m of positive net flows so far this financial year, demonstrating the continuing demand from our clients and intermediaries for high quality investment management, despite the challenging macroeconomic environment and difficult market conditions. It has been a solid half year for the Group, with positive organic growth and two acquisitions completed in the period, underlining our continued progress towards our strategic ambitions. We remain 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 2022 (£m) | ||||||
| Opening FUM 1 Oct 22 |
Organic net new business | Investment performance in the period | Closing FUM 31 Dec 22 |
Organic net new business | Total mvmt | |
| BPS | 8,344 | (82) | 297 | 8,559 | (1.0)% | 2.6% |
| MPS Custody | 948 | 2 | 25 | 975 | 0.2% | 2.8% |
| MPS Platform | 2,262 | 297 | 73 | 2,632 | 13.1% | 16.4% |
| MPS total | 3,210 | 299 | 98 | 3,607 | 9.3% | 12.4% |
| UKIM discretionary | 11,554 | 217 | 395 | 12,166 | 1.9% | 5.3% |
| Funds - DCF | 407 | (17) | 14 | 404 | (4.2)% | (0.7)% |
| Funds - Other | 1,404 | (24) | 29 | 1,409 | (1.7)% | 0.4% |
| Funds total | 1,811 | (41) | 43 | 1,813 | (2.3)% | 0.1% |
| UKIM total | 13,365 | 176 | 438 | 13,979 | 1.3% | 4.6% |
| International | 2,159 | (20) | 108 | 2,247 | (0.9)% | 4.1% |
| Total | 15,524 | 156 | 546 | 16,226 | 1.0% | 4.5% |
| Total investment performance | 3.5% | |||||
| MSCI PIMFA Private Investor Balanced Index1 | 3.5% |
| Six months to 31 December 2022 (£m) | ||||||||
| Opening FUM | Organic net new business | Total Inv. Perf. | Closing FUM | Organic net new business | Total mvmt | |||
| 1 Jul 22 | Q1 | Q2 | Total | 31 Dec 22 | ||||
| BPS | 8,581 | (6) | (82) | (88) | 66 | 8,559 | (1.0)% | (0.3)% |
| MPS Custody | 960 | (3) | 2 | (1) | 16 | 975 | (0.1)% | 1.6% |
| MPS Platform | 2,053 | 243 | 297 | 540 | 39 | 2,632 | 26.3% | 28.2% |
| MPS total | 3,013 | 240 | 299 | 539 | 55 | 3,607 | 17.9% | 19.7% |
| UKIM discretionary | 11,594 | 234 | 217 | 451 | 121 | 12,166 | 3.9% | 4.9% |
| Funds - DCF | 439 | (14) | (17) | (31) | (4) | 404 | (7.1)% | (8.0)% |
| Funds - Other | 1,418 | (20) | (24) | (44) | 35 | 1,409 | (3.1)% | (0.6)% |
| Funds total | 1,857 | (34) | (41) | (75) | 31 | 1,813 | (4.0)% | (2.4)% |
| UKIM total | 13,451 | 200 | 176 | 376 | 152 | 13,979 | 2.8% | 3.9% |
| International | 2,216 | (9) | (20) | (29) | 60 | 2,247 | (1.3)% | 1.4% |
| Total | 15,667 | 191 | 156 | 347 | 212 | 16,226 | 2.2% | 3.6% |
| Total investment performance | 1.4% | |||||||
| MSCI PIMFA Private Investor Balanced Index1 | (0.3)% |
1Capital-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 2022 on Thursday 2 March 2023.
An analyst meeting will be held at 9.30am on Thursday, 2 March 2023. Please contact Katherine Bell at FTI Consulting on 07976 870961 or e-mail [email protected] for further details.
Enquiries to:
| Brooks Macdonald Group plc Andrew Shepherd, CEO Ben Thorpe, Chief Financial Officer |
www.brooksmacdonald.com 020 7659 3492 |
| Peel Hunt LLP (Nominated Adviser and Broker) Paul Shackleton / Andrew Buchanan / John Welch |
020 7418 8900 |
| FTI Consulting Edward Berry / Laura Ewart / Katherine Bell |
[email protected] 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 £16.2 billion as at 31 December 2022.
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 fifteen offices across the UK and Crown Dependencies including London, Birmingham, Cheltenham, East Anglia, Exeter, Leeds, Manchester, Nuneaton, Southampton, Tunbridge Wells, Scotland, Wales, Jersey, Guernsey and Isle of Man.
LEI: 213800WRDF8LB8MIEX37
www.brooksmacdonald.com / @BrooksMacdonald
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
END
TSTGPUPAGUPWGRG