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
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