Brooks Macdonald Group PLC Quarterly Announcement of Funds under Management (3090F)

TIDMBRK

RNS Number : 3090F

Brooks Macdonald Group PLC

27 July 2016

27 July 2016

BROOKS MACDONALD GROUP PLC

Year End Trading Update

Quarterly Announcement of Funds under Management

Notice of Results

Brooks Macdonald Group plc (the "Group"), the AIM listed investment management group, today announces a trading update for its financial year ended 30 June 2016, together with a quarterly update of its funds under management (FUM).

Trading Update

Over the course of the year we have continued to pursue organic growth, whilst undertaking continued investment into our distribution and ICT.

In challenging market conditions the Group has continued to make considerable progress. Our second half was stronger than the first and trading for the year as a whole was in line with our expectations. Discretionary FUM rose to a landmark total of over GBP8bn, with organic growth (net of markets) of 11.6% over the year.

As has been widely reported, the recent EU Referendum vote has increased investment volatility and negatively affected client sentiment. In addition we had hoped to launch two new funds in the final quarter of our financial year and both did not occur due to the uncertainties around the Referendum.

Funds under Management

Discretionary

As at 30 June 2016, discretionary FUM totalled GBP8.301 billion (30 June 2015: GBP7.41 billion).

Over the year discretionary FUM grew by GBP888 million (or 12%). As a comparison, the WMA Balanced index increased by 4.59% over the year.

Over the last quarter, discretionary FUM rose by GBP298 million. This was a rise of 3.7%. As a comparison, the WMA Balanced index increased by 3.43% over the quarter.

Analysis of discretionary fund flows over the quarter and year

 
                            Quarter       Year ended     Year ended 
                              ended         30 June      30 June 2015 
                             30 June      2016 (GBPm)       (GBPm) 
                           2016 (GBPm) 
-----------------------  -------------  -------------  -------------- 
 Opening discretionary 
  FUM                        8,007          7,413           6,550 
-----------------------  -------------  -------------  -------------- 
 Net new discretionary 
  business                    233            863             645 
-----------------------  -------------  -------------  -------------- 
 Acquisitions                  0              0               0 
-----------------------  -------------  -------------  -------------- 
 Investment growth             65             25             218 
-----------------------  -------------  -------------  -------------- 
 Total FUM growth             298            888             863 
-----------------------  -------------  -------------  -------------- 
 Closing FUM                 8,301          8,301           7,413 
-----------------------  -------------  -------------  -------------- 
 Organic growth (net 
  of markets) %               2.91          11.64            9.8 
-----------------------  -------------  -------------  -------------- 
 Total growth %               3.7           11.97           13.2 
-----------------------  -------------  -------------  -------------- 
 

Property assets under administration

The Group's property management business, Braemar Estates, had property assets under administration of GBP1.10 billion at the year end (30 June 2015: GBP1.14 billion), a decrease of 0.32%, or GBP37 million.

Third party assets under administration

The Group now has third party assets under administration in excess of GBP270 million (30 June 2015: >GBP255 million).

Notice of results

The Group intends to issue its results for the year on Wednesday 21 September 2016.

Chris Macdonald, Chief Executive of Brooks Macdonald, commented:

"Against a backdrop of highly volatile market conditions, added to by the recent Brexit vote, we have made good progress over the year. Discretionary funds are up nearly 12%, the majority of which was organic growth as we continued to attract new client funds through our strong intermediary relationships."

"In our 25(th) year I am delighted that discretionary funds under management now exceed GBP8.3bn and we look forward to making further progress over the new financial year."

Enquiries

Brooks Macdonald Group plc

Chris Macdonald - Chief Executive 020 7499 6424

Simon Jackson - Finance Director www.brooksmacdonald.com

Peel Hunt LLP (Nominated Adviser & Broker)

Guy Wiehahn/Adrian Haxby 020 7418 8900

MHP Communications

Reg Hoare / Simon Hockridge / Giles Robinson / Charlie Barker 020 3128 8100

Notes to editors

Brooks Macdonald Group plc is an AIM listed, integrated, wealth management group. The Group consists of six principal companies: Brooks Macdonald Asset Management Limited, a discretionary asset management business; Brooks Macdonald Funds Limited, a fund management business; Brooks Macdonald Financial Consulting Limited, a financial advisory and employee benefits consultancy; Brooks Macdonald Asset Management (International) Limited, a Jersey and Guernsey based provider of discretionary investment management and stockbroking; Brooks Macdonald Retirement Services (International) Limited, a Jersey and Guernsey based retirement planning services provider; and Braemar Estates (Residential) Limited, a specialist property management company.

This information is provided by RNS

The company news service from the London Stock Exchange

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July 27, 2016 02:00 ET (06:00 GMT)