15 April 2021
BROOKS MACDONALD GROUP PLC
Quarterly Announcement of Funds under Management
"Positive net flows in UK Investment Management underline continued strategic momentum"
Brooks Macdonald Group plc ("Brooks Macdonald" or the "Group") today publishes an update on Funds under Management ("FUM") for its third quarter ended 31 March 2021.
Total FUM increased 0.9% in the quarter, ending the period at £15.6 billion (31 December 2020: £15.5 billion) as strategic momentum continued to build from the first half. The increase was driven by positive net flows in UK Investment Management ("UKIM"), particularly in the Managed Portfolio Service ("MPS"), as well as further positive investment performance.
· UKIM had its best quarter of the financial year to date across all its core offerings, delivering net inflows of 0.3%
· In UKIM discretionary, MPS had strong positive net flows of 7.1%, driven in particular by Investment Solutions and Platform MPS. Bespoke Portfolio Service ("BPS") net flows continued to improve despite the ongoing challenges of operating remotely, with specialist products performing strongly
· Funds saw net flows of (3.4)%, driven predominantly by the Defensive Capital Fund which continued to reflect negative trends in the Targeted Absolute Return sector, although outflows were lower than in the prior two quarters
· International experienced increased outflows in the quarter, with net flows of (3.1)%. The reinvigoration of the business and integration of the Lloyds Channel Islands acquisition continued to make progress and medium-term prospects remain positive
· Q3 investment performance was 1.1%, compared to the benchmark MSCI PIMFA Private Investor Balanced Index at 1.6%. For the financial year to date, investment performance was 10.8%, ahead of the benchmark index which was up 8.2%.
The Group's focus on delivering for intermediaries and clients throughout the pandemic has generated a strong and growing pipeline, and the Group continues to expect total net flows to be modestly positive in H2.
Caroline Connellan, CEO of Brooks Macdonald commented:
"It has been another quarter of delivery against our strategy evidenced by good performance in our core UKIM business, the continued positive trend in overall net flows, and a healthy pipeline. This momentum is testament to our people and I am once again grateful to them for their relentless commitment to delivering for intermediaries and clients in challenging circumstances. We remain on track to achieve full year expectations and we are well positioned to continue delivering sustainable, value-enhancing growth."
Analysis of fund flows by service over the period
| Quarter to 31 March 2021 (£m) | ||||||
| | Opening FUM 1 Jan 21 | Organic net new business | Investment performance in the period | Closing FUM 31 Mar 21 | Organic net new business | Total mvmt |
| BPS | 8,910 | (26) | 134 | 9,018 | (0.3)% | 1.2% |
| MPS | 1,962 | 139 | 28 | 2,129 | 7.1% | 8.5% |
| UKIM discretionary | 10,872 | 113 | 162 | 11,147 | 1.0% | 2.5% |
| Funds - DCF | 509 | (41) | 12 | 480 | (8.1)% | (5.7)% |
| Funds - Other | 1,536 | (28) | 15 | 1,523 | (1.8)% | (0.8)% |
| Funds total | 2,045 | (69) | 27 | 2,003 | (3.4)% | (2.1)% |
| UKIM total | 12,917 | 44 | 189 | 13,150 | 0.3% | 1.8% |
| International | 2,586 | (79) | (19) | 2,488 | (3.1)% | (3.8)% |
| Total | 15,503 | (35) | 170 | 15,638 | (0.2)% | 0.9% |
| | ||||||
| Total investment performance | 1.1% | |||||
| MSCI PIMFA Private Investor Balanced Index1 | 1.6% | |||||
| Nine months to 31 March 2021 (£m) | |||||||||
| | Opening FUM 1 Jul 20 | Organic net new business Q1 | Organic net new business Q2 | Organic net new business Q3 | FUM acquired in the period2 | Inv. Perf. in the period | Closing FUM 31 Mar 21 | Total organic net new business | Total mvmt |
| BPS | 8,247 | (119) | (43) | (26) | - | 959 | 9,018 | (2.3)% | 9.3% |
| MPS | 1,809 | (81) | 40 | 139 | - | 222 | 2,129 | 5.4% | 17.7% |
| UKIM discretionary | 10,056 | (200) | (3) | 113 | - | 1,181 | 11,147 | (0.9)% | (10.8)% |
| Funds - DCF | 617 | (73) | (74) | (41) | - | 51 | 480 | (30.5)% | (22.2)% |
| Funds - Other | 1,434 | (27) | (10) | (28) | - | 154 | 1,523 | (4.5)% | 6.2% |
| Funds total | 2,051 | (100) | (84) | (69) | - | 205 | 2,003 | (12.3)% | (2.3)% |
| UKIM total | 12,107 | (300) | (87) | 44 | - | 1,386 | 13,150 | (2.8)% | 8.6% |
| International | 1,578 | 39 | (19) | (79) | 882 | 87 | 2,488 | (3.7)% | 57.7% |
| Total | 13,685 | (261) | (106) | (35) | 882 | 1,473 | 15,638 | (2.9)% | 14.3% |
| | |||||||||
| Total investment performance | 10.8% | ||||||||
| MSCI PIMFA Private Investor Balanced Index1 | 8.2% | ||||||||
1Capital-only index.
2Closing FUM of the acquired Lloyds Bank International's Channel Islands wealth management and funds business at the completion date, 30 November 2020.
Enquiries to:
| Brooks Macdonald Group plc Caroline Connellan, CEO Ben Thorpe, Group Finance Director
| 020 7659 3492 |
| Peel Hunt LLP (Nominated Adviser and Broker) Rishi Shah / John Welch
| 020 7418 8900 |
| FTI Consulting Ed Berry / Laura Ewart / Katherine Bell
| brooksmacdonald@fticonsulting.com 07703 330199 / 07711 387085 / 07976 870961 |
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 £15.6 billion as at 31 March 2021.
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 international investment management, and acts as fund manager to a range of onshore and international funds.
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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