Quarterly Announcement of FUM and Trading Update
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"FUM up 7.0% over FY24 to £18.0 billion, with full year results expected to be in line with market expectations"
Brooks Macdonald Group plc ("Brooks Macdonald" or the "Group") today publishes a trading update and its quarterly announcement of Funds under Management ("FUM") for the fourth quarter of its financial year ended 30 June 2024.
Andrew Shepherd, CEO of Brooks Macdonald commented:
"I am pleased to report that FUM increased to £18.0 billion. We remained dedicated to serving our clients in a changing economic environment. This focus resulted in strong gross inflows, with high demand for wealth management services that provide solutions through the entire investor lifecycle. Outflows have remained elevated but with a more certain political backdrop, lower inflation and the increased likelihood of a reduction in interest rates, we anticipate that these will moderate. We will stay focused on meeting our clients' investment needs."
Quarterly Announcement of Funds under Management
The Group recorded net outflows in the quarter of £0.2 billion, which was an improvement on the prior quarter, and was more than offset by positive investment performance, resulting in closing FUM of £18.0 billion (31 March 2024: £17.9 billion).
Highlights in the quarter included:
- Group gross inflows in the fourth quarter were £623 million, the highest of any quarter in the financial year, reflecting strong client demand for our broad proposition set.
- Platform MPS, including the Group's B2B offering for financial advisers, BM Investment Solutions ("BMIS"), grew to £4.4 billion (31 March 2024: £4.2 billion) with annualised organic net new business in the quarter of 13.0% of opening FUM.
- BPS experienced net outflows in the quarter of £0.2 billion or 7.1% on an annualised basis (FY24 Q3: £0.2 billion or 9.6%). BPS gross inflows increased by 33.1% in the fourth quarter as clients added funds to our specialist products.
- Investment performance for the quarter was relatively strong at 1.4%, ahead of the benchmark1 which increased by 1.1% in the period.
Full Year Trading Update
For the financial year ended 30 June 2024, the Group experienced net outflows of £0.6 billion or 3.7%, in line with guidance. Investment performance contributed £1.8 billion, leading to overall growth in the Group's closing FUM of 7.0% from the start of the financial year to £18.0 billion (30 June 2023: £16.8 billion).
Trading performance in the second half was solid, and the Group anticipates its full year results to be in line with market expectations.
In June 2024, the Group announced the retirement of Andrew Shepherd as Group CEO and the appointment of Andrea Montague in this role from 1 October 2024, subject to regulatory approval.
The Group will report full year results and the outcome of the strategic review of the International business on 12 September 2024.
Analysis of FUM net flows by service over the quarter
Quarter to 30 June 2024 (£m)
| Opening FUM 1 Apr 24 | Organic net new business | Investment performance in the period | Closing FUM 30 Jun 24 | Organic net new business | Total mvmt | |
|---|---|---|---|---|---|---|
| BPS | 8,913 | (158) | 125 | 8,880 | (1.8)% | (0.4)% |
| MPS Custody | 989 | (25) | 10 | 974 | (2.5)% | (1.5)% |
| MPS Platform | 4,164 | 135 | 68 | 4,367 | 3.2% | 4.9% |
| MPS total | 5,153 | 110 | 78 | 5,341 | 2.1% | 3.6% |
| UKIM discretionary | 14,066 | (48) | 203 | 14,221 | (0.3)% | 1.1% |
| Funds | 1,587 | (76) | 34 | 1,545 | (4.8)% | (2.6)% |
| UKIM total | 15,653 | (124) | 237 | 15,766 | (0.8)% | 0.7% |
| International | 2,274 | (30) | 18 | 2,262 | (1.3)% | (0.5)% |
| Total | 17,927 | (154) | 255 | 18,028 | (0.9)% | 0.6% |
| Total investment performance | 1.4% | |||||
| MSCI PIMFA Private Investor Balanced Index 1 | 1.1% |
Analysis of FUM net flows by service over the twelve months
Twelve months to 30 June 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 | Q4 | Total | FY | 30 Jun 24 | FY | FY | |
| BPS | 8,527 | (98) | (94) | (205) | (158) | (555) | 908 | 8,880 | (6.5)% | 4.1% |
| MPS Custody | 966 | (14) | (21) | (20) | (25) | (80) | 88 | 974 | (8.3)% | 0.8% |
| MPS Platform | 3,489 | 147 | 121 | 65 | 135 | 468 | 410 | 4,367 | 13.4% | 25.2% |
| MPS total | 4,455 | 133 | 100 | 45 | 110 | 388 | 498 | 5,341 | 8.7% | 19.9% |
| UKIM discretionary | 12,982 | 35 | 6 | (160) | (48) | (167) | 1,406 | 14,221 | (1.3)% | 9.5% |
| Funds | 1,708 | (78) | (71) | (112) | (76) | (337) | 174 | 1,545 | (19.7)% | (9.5)% |
| UKIM total | 14,690 | (43) | (65) | (272) | (124) | (504) | 1,580 | 15,766 | (3.4)% | 7.3% |
| International | 2,157 | (27) | (33) | (22) | (30) | (112) | 217 | 2,262 | (5.2)% | 4.9% |
| Total | 16,847 | (70) | (98) | (294) | (154) | (616) | 1,797 | 18,028 | (3.7)% | 7.0% |
| Total investment performance | 10.7% | |||||||||
| MSCI PIMFA Private Investor Balanced Index 1 | 11.4% |
1 MSCI PIMFA Private Investor Balanced Index, a capital-only index.
Analysis of FUM gross flows by service over the twelve months
Twelve months to 30 June 2024 (£m)
| Organic gross inflows | Q4 vs Q3 | Organic gross outflows | Q4 vs Q3 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Q1 | Q2 | Q3 | Q4 | Total YTD | Inc/(dec) | Q1 | Q2 | Q3 | Q4 | Total YTD | Inc/(dec) | |
| BPS | 192 | 173 | 139 | 185 | 689 | 33.1% | (290) | (267) | (344) | (343) | (1,244) | (0.3)% |
| MPS Custody | 15 | 15 | 19 | 21 | 70 | 10.5% | (29) | (36) | (39) | (46) | (150) | 17.9% |
| MPS Platform | 276 | 317 | 281 | 325 | 1,199 | 15.7% | (129) | (196) | (216) | (190) | (731) | (12.0)% |
| MPS total | 291 | 332 | 300 | 346 | 1,269 | 15.3% | (158) | (232) | (255) | (236) | (881) | (7.5)% |
| UKIM discretionary | 483 | 505 | 439 | 531 | 1,958 | 21.0% | (448) | (499) | (599) | (579) | (2,125) | (3.3)% |
| Funds | 55 | 52 | 57 | 58 | 222 | 1.8% | (133) | (123) | (169) | (134) | (559) | (20.7)% |
| UKIM total | 538 | 557 | 496 | 5 89 | 2,180 | 18.8% | (581) | (622) | (768) | (713) | (2,684) | (7.2)% |
| International | 44 | 34 | 38 | 34 | 150 | (10.5)% | (71) | (67) | (60) | (64) | (262) | 6.7% |
| Total | 582 | 591 | 534 | 623 | 2,330 | 16.7% | (652) | (689) | (828) | (777) | (2,946) | (6.2)% |
Notice of Full Year results
The Group intends to announce its results for the year ended 30 June 2024 on Thursday 12 September 2024.
www.brooksmacdonald.com / @BrooksMacdonald
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