Brooks Macdonald Group PLC Quarterly Announcement of Funds under Management (6179L)

TIDMBRK

RNS Number : 6179L

Brooks Macdonald Group PLC

14 January 2021

14 January 2021

BROOKS MACDONALD GROUP PLC

Quarterly Announcement of Funds under Management and Half Year Trading Update

"Record FUM of GBP15.5bn, up 13.6% in the quarter. On track to meet full year margin and profit expectations."

Brooks Macdonald Group plc ("Brooks Macdonald" or the "Group") today publishes a n update on discretionary Funds under Management ("FUM") for its second quarter ended 31 December 2020, together with a Trading Update for the half year .

Total FUM increased 13.6% in the quarter, ending the period at GBP15.5 billion (30 September 2020: GBP13.7 billion). During the half year ended 31 December 2020, total FUM increased by 13.3% ( 30 June 2020: GBP13.7 billion). The increase was driven by strong investment performance, an improving trend in net flows, and completion of the acquisition of Lloyds Bank's Channel Islands wealth management and funds business, with its portfolio clients transferring to the Group in line with expectations .

Net flows improved over the half year, with Q2 materially better than Q1. Momentum has continued to build through the quarter into 2021, with a strong new business pipeline despite the uncertainty of the short-term macroeconomic outlook. Highlights for the quarter included:

-- In UKIM, MPS net flows turned positive, with organic net new business of 2.3%, while BPS was marginally negative at (0.5)%, leaving total UKIM discretionary broadly flat on an organic basis with overall growth of 8.4% driven by investment performance

-- UKIM Funds saw net outflows, largely due to the Defensive Capital Fund which had net flows of (13.5)%, reflecting trends in the Targeted Absolute Return sector

   --    International net flows were (1.2)%, although showing an improving trend through the quarter. 

Investment performance continued to be strong, up 7.9% for the quarter, ahead of the MSCI PIMFA Private Investor Balanced Index which was up 7.0%. For the half year, investment performance was up 9.5%, again ahead of the benchmark index which was up 6.5%.

Revenue, underlying profit and underlying profit margin are all ahead of the same period last year and the Group remains on track to achieve full year expectations.

Caroline Connellan, CEO of Brooks Macdonald commented:

"I am proud of what our people have delivered in the past six months in exceptionally difficult circumstances, with the second quarter particularly encouraging as we reached a record GBP15.5 billion in FUM. Over the period we built momentum in net flows, delivered strong investment performance, and completed the acquisition of Lloyds' Channel Islands wealth management and funds business.

"The work we have put in over recent years has made Brooks Macdonald a robust business, demonstrated by our strong commercial performance and strategic progress. We are excited about the opportunity we have to continue to make a difference for clients and intermediaries, while also delivering for the Group's shareholders."

Analysis of fund flows by service over the period

 
                                 Quarter to 31 December 2020 (GBPm) 
                   Opening    Organic   FUM acquired     Investment     Closing    Organic    Total 
                     FUM      net new      in the        performance      FUM      net new     mvmt 
                    1 Oct     business    period(1)     in the period    31 Dec    business 
                      20                                                   20 
                  --------  ----------  ------------  ---------------  --------  ----------  ------- 
 BPS                 8,256        (43)             -              697     8,910      (0.5)%     7.9% 
                  --------  ----------  ------------  ---------------  --------  ----------  ------- 
 MPS                 1,774          40             -              148     1,962        2.3%    10.6% 
                  --------  ----------  ------------  ---------------  --------  ----------  ------- 
 UKIM 
  discretionary     10,030         (3)             -              845    10,872      (0.0)%     8.4% 
                  --------  ----------  ------------  ---------------  --------  ----------  ------- 
 Funds - 
  DCF                  548        (74)             -               35       509     (13.5)%   (7.1)% 
                  --------  ----------  ------------  ---------------  --------  ----------  ------- 
 Funds - 
  Other              1,434        (10)             -              112     1,536      (0.7)%     7.1% 
                  --------  ----------  ------------  ---------------  --------  ----------  ------- 
 Funds total         1,982        (84)             -              147     2,045      (4.2)%     3.2% 
                  --------  ----------  ------------  ---------------  --------  ----------  ------- 
 UKIM total         12,012        (87)             -              992    12,917      (0.7)%     7.5% 
                  --------  ----------  ------------  ---------------  --------  ----------  ------- 
 International       1,640        (19)           882               83     2,586      (1.2)%    57.7% 
                  --------  ----------  ------------  ---------------  --------  ----------  ------- 
 Total              13,652       (106)           882            1,075    15,503      (0.8)%    13.6% 
                  --------  ----------  ------------  ---------------  --------  ----------  ------- 
 
 Total investment performance                                                                   7.9% 
-------------------------------------------------------------------------------  ------------------- 
 MSCI PIMFA Private Investor Balanced Index(2)                                                  7.0% 
-------------------------------------------------------------------------------  ------------------- 
 
 
                                     Six months to 31 December 2020 (GBPm) 
                   Opening    Organic    Organic   FUM acquired     Investment     Closing     Total      Total 
                     FUM      net new    net new      in the        performance      FUM      organic      mvmt 
                    1 Jul     business   business    period(1)     in the period    31 Dec    net new 
                      20         Q1         Q2                                        20      business 
                  --------  ----------  ---------  ------------  ---------------  --------  ----------  -------- 
 BPS                 8,247       (119)       (43)             -              825     8,910      (2.0)%      8.0% 
                  --------  ----------  ---------  ------------  ---------------  --------  ----------  -------- 
 MPS                 1,809        (81)         40             -              194     1,962      (2.3)%      8.5% 
                  --------  ----------  ---------  ------------  ---------------  --------  ----------  -------- 
 UKIM 
  discretionary     10,056       (200)        (3)             -            1,019    10,872      (2.0)%    (8.1)% 
                  --------  ----------  ---------  ------------  ---------------  --------  ----------  -------- 
 Funds - 
  DCF                  617        (73)       (74)             -               39       509     (23.8)%   (17.5)% 
                  --------  ----------  ---------  ------------  ---------------  --------  ----------  -------- 
 Funds - 
  Other              1,434        (27)       (10)             -              139     1,536      (2.6)%      7.1% 
                  --------  ----------  ---------  ------------  ---------------  --------  ----------  -------- 
 Funds total         2,051       (100)       (84)             -              178     2,045      (9.0)%    (0.3)% 
                  --------  ----------  ---------  ------------  ---------------  --------  ----------  -------- 
 UKIM total         12,107       (300)       (87)             -            1,197    12,917      (3.2)%      6.7% 
                  --------  ----------  ---------  ------------  ---------------  --------  ----------  -------- 
 International       1,578          39       (19)           882              106     2,586        1.3%     63.9% 
                  --------  ----------  ---------  ------------  ---------------  --------  ----------  -------- 
 Total              13,685       (261)      (106)           882            1,303    15,503      (2.7)%     13.3% 
                  --------  ----------  ---------  ------------  ---------------  --------  ----------  -------- 
 
Total investment performance                                                                                9.5% 
------------------------------------------------------------------------------------------  -------------------- 
MSCI PIMFA Private Investor Balanced Index(2)                                                               6.5% 
------------------------------------------------------------------------------------------  -------------------- 
 

(1) Closing FUM of the acquired Lloyds Bank International's Channel Islands wealth management and funds business at the completion date, 30 November 2020.

(2) Capital-only index.

Enquiries to:

 
 Brooks Macdonald Group plc                       www.brooksmacdonald.com 
  Caroline Connellan, CEO                                   020 7659 3492 
  Ben Thorpe, Group Finance Director 
 Peel Hunt LLP (Nominated Adviser and Broker) 
  Adrian Trimmings / Rishi Shah / John Welch                020 7418 8900 
 MHP Communications 
  Reg Hoare / Simon Hockridge / Charlie Barker              020 3128 8540 
 

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 GBP15.5 billion as at 31 December 2020.

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 investment management and acts as fund manager to four regulated OEICs providing a range of onshore and offshore risk-managed multi-asset funds and a specialised absolute return fund.

The Group has twelve offices across the UK and the Channel Islands including London, East Anglia, Hampshire, Leamington Spa, Leeds, Manchester, Taunton, Tunbridge Wells, Scotland, Wales, Jersey and Guernsey.

LEI: 213800WRDF8LB8MIEX37

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 [e-mail] 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

TSTEAPFDFELFEFA

(END) Dow Jones Newswires

January 14, 2021 02:00 ET (07:00 GMT)