17
April 2024
BROOKS MACDONALD GROUP
PLC
Third Quarter FUM
Announcement
"FUM up 2.0% in the quarter
to £17.9 billion"
Brooks Macdonald Group plc ("Brooks
Macdonald" or "the Group") today publishes an update on its Funds
under Management ("FUM") for the third quarter of its financial
year, the three months ended 31 March 2024.
Andrew Shepherd, CEO of Brooks Macdonald
commented:
"Today we
report that FUM increased to £17.9 billion over the course of the
quarter as markets responded to the improving macroeconomic
outlook. We have also seen encouraging flows in our Platform MPS
and specialist BPS propositions demonstrating continued demand for
our broad product range.
"However, interest rates are still
high, placing continuing pressure on our clients, and we remain
focused on meeting their needs through our innovative solutions and
excellent client service.
"I remain confident in our future
opportunity, and I want to extend my appreciation to all our
stakeholders for their ongoing support, and to everyone at BM in
particular for their unwavering commitment to our
clients."
Quarterly FUM update
During the quarter ended 31 March
2024, the Group's closing FUM increased by 2.0% to £17.9 billion
(31 December 2023: £17.6 billion).
Gross inflows were robust at £0.5
billion, whilst gross outflows continued to be elevated given the
prevailing macroeconomic backdrop of high interest rates and
inflation, reaching £0.8 billion in Q3. This resulted in
overall net outflows for the quarter of £0.3 billion or 1.7%.
Positive investment performance in the quarter of £0.6 billion or
3.7%, more than offset net outflows and contributed to the
increased FUM.
Highlights for the quarter
included:
· Platform MPS,
including the Group's B2B offering for financial advisers, BM
Investment Solutions ("BMIS"), grew to £4.2 billion with net new
business of 1.7% of opening FUM.
· BPS experienced
net outflows in the quarter of £0.2 billion or 2.3%, as clients
continue to withdraw funds to repay debt or hold higher cash
balances in the current interest rate environment;
· Within UK BPS, our
Decumulation specialised product grew by 9.0% in the quarter,
offering a solution to meet clients' income requirements by
shielding their portfolio from downturn in the early years of
withdrawal;
· Investment
performance for the quarter was positive at 3.7%, slightly below
the benchmark1
which increased by 4.4% in the period, the
difference driven by the predominance of clients of a lower risk
profile in our book than the benchmark and therefore a higher
allocation to bonds which underperformed equities in the
quarter;
Outlook
The outlook for underlying profit
for the year remains in line with market expectations. In the
second half, we will continue to realise the cost benefits of the
organisational changes announced in October 2023 while retaining a
focus on operational
excellence.
Demand for our products and services
remains positive, particularly in our specialised BPS products and
Platform MPS, which is reflected in our gross inflows. However,
given the persistence of current trends in the market and client
behaviour, in line with previous guidance, the Group expects net
outflows for the full year.
The strategic review of the Group's
International operations is progressing and we will communicate the
outcome later this year.
1 MSCI PIMFA Private Investor Balanced
Index
Analysis of FUM net flows by service over the
quarter
Quarter to 31 March 2024
(£m)
|
|
Opening FUM
1 Jan 24
|
Organic net new
business
|
Investment performance in the
period
|
Closing FUM
31 Mar 24
|
Organic net new
business
|
Total mvmt
|
BPS
|
8,812
|
(205)
|
306
|
8,913
|
(2.3)%
|
1.1%
|
MPS Custody
|
970
|
(20)
|
39
|
989
|
(2.1)%
|
2.0%
|
MPS Platform
|
3,930
|
65
|
169
|
4,164
|
1.7%
|
6.0%
|
MPS
total
|
4,900
|
45
|
208
|
5,153
|
0.9%
|
5.2%
|
UKIM discretionary
|
13,712
|
(160)
|
514
|
14,066
|
(1.2)%
|
2.6%
|
Funds
|
1,652
|
(112)
|
47
|
1,587
|
(6.8)%
|
(4.0)%
|
UKIM total
|
15,364
|
(272)
|
561
|
15,653
|
(1.8%)
|
1.9%
|
International
|
2,215
|
(22)
|
81
|
2,274
|
(1.0)%
|
2.7%
|
Total
|
17,579
|
(294)
|
642
|
17,927
|
(1.7)%
|
2.0%
|
|
Total investment performance
|
3.7%
|
MSCI PIMFA Private Investor Balanced
Index1
|
4.4%
|
1Capital-only index.
Analysis of FUM net flows by service over the nine
months
Nine months to 31 March 2024
(£m)
|
|
Opening FUM
|
|
Organic net new
business
|
Total Inv.
Perf.
|
Closing FUM
|
Organic net new
business
|
Total mvmt
|
|
1 Jul 23
|
Q1
|
Q2
|
Q3
|
Total YTD
|
YTD
|
31 Mar 24
|
YTD
|
YTD
|
BPS
|
8,527
|
(98)
|
(94)
|
(205)
|
(397)
|
783
|
8,913
|
(4.7)%
|
4.5%
|
MPS Custody
|
966
|
(14)
|
(21)
|
(20)
|
(55)
|
78
|
989
|
(5.7)%
|
2.4%
|
MPS Platform
|
3,489
|
147
|
121
|
65
|
333
|
342
|
4,164
|
9.5%
|
19.3%
|
MPS
total
|
4,455
|
133
|
100
|
45
|
278
|
420
|
5,153
|
6.2%
|
15.7%
|
UKIM discretionary
|
12,982
|
35
|
6
|
(160)
|
(119)
|
1,203
|
14,066
|
(0.9)%
|
8.4%
|
Funds
|
1,708
|
(78)
|
(71)
|
(112)
|
(261)
|
140
|
1,587
|
(15.3)%
|
(7.1)%
|
UKIM total
|
14,690
|
(43)
|
(65)
|
(272)
|
(380)
|
1,343
|
15,653
|
(2.6)%
|
6.6%
|
International
|
2,157
|
(27)
|
(33)
|
(22)
|
(82)
|
199
|
2,274
|
(3.8)%
|
5.4%
|
Total
|
16,847
|
(70)
|
(98)
|
(294)
|
(462)
|
1,542
|
17,927
|
(2.7)%
|
6.4%
|
|
Total investment performance
|
9.2%
|
MSCI PIMFA Private Investor Balanced
Index1
|
10.3%
|
|
|
|
|
|
|
|
|
|
|
|
1Capital-only index.
Analysis of FUM gross flows by service over the nine
months
Nine months to 31 March 2024
(£m)
|
|
Organic gross
inflows
|
Q3 vs Q2
|
Organic gross
outflows
|
Q3 vs Q2
|
|
Q1
|
Q2
|
Q3
|
Total YTD
|
Inc/(dec) %
|
Q1
|
Q2
|
Q3
|
Total YTD
|
Inc/(dec) %
|
BPS
|
192
|
173
|
139
|
504
|
(19.7)
|
(290)
|
(267)
|
(344)
|
(901)
|
28.8
|
MPS Custody
|
15
|
15
|
19
|
49
|
26.7
|
(29)
|
(36)
|
(39)
|
(104)
|
8.3
|
MPS Platform
|
276
|
317
|
282
|
875
|
(11.0)
|
(129)
|
(196)
|
(216)
|
(541)
|
10.2
|
MPS
total
|
291
|
332
|
300
|
924
|
(9.6)
|
(158)
|
(232)
|
(255)
|
(645)
|
9.9
|
UKIM discretionary
|
483
|
505
|
439
|
1,427
|
(13.1)
|
(448)
|
(499)
|
(599)
|
(1,546)
|
20.0
|
Funds
|
55
|
52
|
56
|
163
|
7.7
|
(133)
|
(123)
|
(169)
|
(424)
|
37.4
|
UKIM total
|
538
|
557
|
495
|
1,590
|
(11.1)
|
(581)
|
(622)
|
(768)
|
(1,970)
|
23.5
|
International
|
44
|
34
|
38
|
116
|
11.8
|
(71)
|
(67)
|
(60)
|
(198)
|
(10.4)
|
Total
|
582
|
591
|
533
|
1,706
|
(9.8)
|
(652)
|
(689)
|
(828)
|
(2,168)
|
20.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Enquiries to:
Brooks Macdonald Group plc
Andrew Shepherd, CEO
Andrea Montague, Chief Financial
Officer
|
www.brooksmacdonald.com
020 7927 4816
|
Singer Capital Markets (Nominated Adviser and Joint
Broker)
Charles Leigh-Pemberton / James
Moat
|
020 7496
3000
|
Investec Bank plc (Joint Broker)
Bruce Garrow / David
Anderson
|
020 7597
4000
|
FTI
Consulting
Edward Berry
|
brooksmacdonald@fticonsulting.com
07703
330199
|
|
|
|
Notes to editors
Brooks Macdonald Group plc, through
its various subsidiaries, provides leading wealth 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 £17.9 billion as
at 31 March 2024.
Brooks Macdonald offers outsourced
discretionary investment management for intermediaries and
advice-led integrated wealth management for private clients. The
Group also 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, Birmingham,
East Anglia, Exeter, Leeds, Manchester, Nuneaton, Southampton,
Tunbridge Wells, Scotland, Wales, Jersey, Guernsey and Isle of
Man.
LEI:
213800WRDF8LB8MIEX37
www.brooksmacdonald.com
/ @BrooksMacdonald