Quarterly Announcement of Funds under Management
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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 first quarter of its financial year ending 30 June 2025.
Andrea Montague, CEO of Brooks Macdonald commented:
"Our business has shown resilience through improved client retention across all our UK propositions.
The considerable speculation around the upcoming Budget and rumoured changes to taxation and reliefs has clearly had an impact on investor confidence with lower gross inflows in the quarter.
Our recently announced acquisitions of LIFT and Lucas Fettes demonstrate the pace at which we are delivering on our strategy, to reignite growth focusing on client service, reach, scale, and efficiency. I remain confident about unlocking the full potential of Brooks Macdonald."
Quarterly Announcement of Funds under Management[1]
During the first quarter of the financial year, the Group saw net outflows of £0.1 billion (Q4 FY24: £0.1 billion), representing 0.7% of Funds under Management, as uncertainty around the Budget led to a reduction in gross inflows, down 6.0% quarter on quarter.
MPS Platform, including the Group's B2B offering for financial advisers, BM Investment Solutions ("BMIS"), grew to £4.6 billion (30 June 2024: £4.4 billion) with annualised organic net new business in the quarter of 13.0% of opening FUM.
Encouragingly, gross outflows were down 5.1% quarter on quarter, marking their second sequential reduction.
The net outflows were offset by positive investment performance in the quarter resulting in the Group's closing FUM increasing to £17.9 billion (30 June 2024: £17.8 billion).
Analysis of FUM net flows by service over the quarter (ex DCF)
Quarter to 30 September 2024 (£m)
| Opening FUM 1 Jul 24 | Organic net new business | Investment performance in the period | Closing FUM 30 Sep 24 | Organic net new business | Total mvmt | |
|---|---|---|---|---|---|---|
| BPS | 8,880 | (176) | 131 | 8,835 | (2.0)% | (0.5)% |
| MPS Custody | 974 | (26) | 13 | 961 | (2.7)% | (1.3)% |
| MPS Platform | 4,367 | 142 | 45 | 4,554 | 3.3% | 4.3% |
| MPS total | 5,341 | 116 | 58 | 5,515 | 2.2% | 3.3% |
| Funds | 1,323 | (51) | 14 | 1,286 | (3.9)% | (2.8)% |
| UK total | 15,544 | (111) | 203 | 15,636 | (0.7)% | 0.6% |
| International | 2,262 | (16) | 25 | 2,271 | (0.7)% | 0.4% |
| Total | 17,806 | (127) | 228 | 17,907 | (0.7)% | 0.6% |
Analysis of FUM gross flows by service over the quarter (ex DCF)
| Gross inflows | Gross outflows | |||||
|---|---|---|---|---|---|---|
| Q4 FY24 | Q1 FY25 | Q1 vs Q4 Inc/(Dec) | Q4 FY24 | Q1 FY25 | Q1 vs Q4 Inc/(Dec) | |
| BPS | 185 | 160 | (13.5)% | (343) | (336) | 2.0% |
| MPS Custody | 21 | 14 | (33.3)% | (46) | (40) | 13.0% |
| MPS Platform | 325 | 311 | (4.3)% | (190) | (169) | 11.1% |
| MPS total | 346 | 325 | (6.1)% | (236) | (209) | 11.4% |
| Funds | 52 | 43 | (17.3)% | (102) | (94) | 7.8% |
| UK total | 583 | 528 | (9.4)% | (681) | (639) | 6.2% |
| International | 34 | 52 | 52.9% | (64) | (68) | (6.3)% |
| Total | 617 | 580 | (6.0)% | (745) | (707) | 5.1% |
www.brooksmacdonald.com / @BrooksMacdonald
[1]All FUM numbers exclude the Defensive Capital Fund ("DCF") following the announced disposal to RM Capital Markets Limited in September. During Q1 FY25, DCF recorded net outflow of £94 million and investment performance of £10 million resulting in closing FUM of £138 million as at 30 September 2024.
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