Brooks Macdonald Group PLC Trading Update (1394V)

TIDMBRK

RNS Number : 1394V

Brooks Macdonald Group PLC

26 January 2017

26 January 2017

BROOKS MACDONALD GROUP PLC

Half year trading update and Quarterly Announcement of Funds under Management

Notice of Half Year Results

Brooks Macdonald Group plc (the "Group"), the AIM listed integrated investment management group, today announces a trading update for its half year ended 31 December 2016 together with an update on its funds under management.

Trading Update

Over the last six months discretionary funds under management ('FUM') have risen by 12.4% ending the period at GBP9.33 billion (30 June 2016: GBP8.301 billion). This is compared to a rise in the WMA Balanced Index of 7.8%. Increases have been seen across Asset Management, Funds and International.

Net organic growth over the period was 4.0%, against a backdrop of uncertainty following the decision by the UK to leave the European Union and later in the half, further uncertainty surrounding the implications of a Trump presidency. These outcomes have undoubtedly dented client sentiment over the last six months and whilst portfolios have performed well in these challenging conditions, we expect market volatility to remain.

We have continued to progress as planned with our IT system development whilst pursuing our core strategy of growing the business organically. Trading over the first half is in line with management's expectations.

Quarterly Funds under Management Update

Discretionary

As at 31 December 2016, discretionary funds under management ('FUM') totalled GBP GBP9.33 billion, an increase of 4.6% over the quarter (30 September 2016: GBP8.922 billion). As a comparison the WMA balanced index increased by 2.4%.

This represents all our discretionary funds across the Group (Asset Management, Funds and International) and this growth was a combination of performance (GBP246m) and net new business (GBP162m) over the quarter.

Analysis of discretionary fund flows over the quarter and half year

 
                          December 2016   December 2016 
                           (quarter on      (half year 
                             quarter)       on year end) 
                                                GBPm 
                               GBPm 
-----------------------  --------------  --------------- 
 Opening discretionary 
  FUM                         8,922           8,301 
-----------------------  --------------  --------------- 
 Net new discretionary 
  business                     162             332 
-----------------------  --------------  --------------- 
 Acquisitions                   0               0 
-----------------------  --------------  --------------- 
 Investment growth             246             697 
-----------------------  --------------  --------------- 
 Total FUM growth              408            1,029 
-----------------------  --------------  --------------- 
 Closing FUM                  9,330           9,330 
-----------------------  --------------  --------------- 
 Organic growth (net 
  of markets)                 1.80%            4.0% 
-----------------------  --------------  --------------- 
 Total growth                 4.57%           12.4% 
-----------------------  --------------  --------------- 
 

Notice of Results

The Group intends to issue its half year results on Wednesday 15 March 2017.

Chris Macdonald, Chief Executive of Brooks Macdonald, commented:

"The Group has continued to make good progress on a number of fronts, with discretionary funds under management now exceeding GBP9bn, organic growth of GBP806m in the calendar year, continuation of our growth strategies both onshore and offshore and further progress of our IT system development.

"In April we will welcome Caroline Connellan as our new Chief Executive and we look forward to the future with confidence."

Enquiries to:

 
 Brooks Macdonald Group plc           www.brooksmacdonald.com 
  Chris Macdonald, Chief Executive              020 7499 6424 
  Andrew Shepherd, Deputy Chief 
  Executive 
  Simon Jackson, Finance Director 
 Peel Hunt LLP (Nominated Adviser 
  and Broker) 
  Guy Wiehahn                                   020 7418 8900 
 MHP Communications 
  Reg Hoare / Simon Hockridge / 
  Giles Robinson / Charlie Barker               020 3128 8100 
 

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 (FUM) of GBP9.33bn as at 31 December 2016.

Through its core divisions, 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 offshore fund management and administration services and acts as fund manager to regulated OEICs, providing specialist funds in the property and structured return sectors and managing property assets on behalf of these funds and other clients.

The Group has twelve offices across the UK and the Channel Islands including London, Edinburgh, Guernsey, Hale, Hampshire, Jersey, Leamington Spa, Manchester, Taunton, Tunbridge Wells and York.

This information is provided by RNS

The company news service from the London Stock Exchange

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January 26, 2017 02:00 ET (07:00 GMT)