Quarterly FUM & Intention to Move to Main Market
Q4 FUM £17.9bn flat; strongest gross inflows in 18 months offset by elevated outflows; announcing move to Main Market.
vs expectations: in line
- Total FUM at 31 December 2024 £17.9bn (prior £17.9bn at 30 September 2024)
- Total FUM excluding BMI £15.7bn (prior £15.6bn at 30 September 2024)
- Gross inflows (excluding BMI) £579m (prior £528m in Q1)
- Net outflows in quarter £(151)m
- Net outflows as % of opening FUM (1.0%)
- MPS Platform net inflows £146m
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Brooks Macdonald Group plc ("Brooks Macdonald" or the "Group") today announces flows and funds under management ("FUM") for the quarter ended 31 December 2024 and its intention to move from AIM to the London Stock Exchange's Main Market.
Andrea Montague, CEO of Brooks Macdonald commented:
"This is Brooks Macdonald's strongest quarter of gross inflows for 18 months, driven by the quality of our service, the scope of products tailored to meet clients' needs, and our strong investment performance.
While outflows remained elevated in the quarter, we are taking actions to improve asset retention as well as driving new business growth. Additionally, we continue to scale and enhance our financial planning expertise, including most recently through the acquisitions of LIFT, Lucas Fettes and CST Wealth Management. We remain focused on the execution of our strategy to reignite growth, serving our clients well, reaching more clients, and delivering value for our clients, shareholders and employees.
I am pleased to announce the Board's intention to transition Brooks Macdonald from AIM to the Main Market. This move will further enhance the Group's corporate profile and extend the opportunity to own its ordinary shares to a broader group of investors."
Flows and Funds under Management
- Total Funds under Management of £17.9bn at 31 December 2024 (30 September 2024: £17.9bn1, 30 June 2024: £17.8bn1). Total FUM excluding BMI of £15.7bn at 31st December 2024 (30 September 2024: £15.6bn, 30 June 2024 £15.5bn).
- Gross inflows excluding BMI were robust in the 3 months to 31 December at £579m. These were offset by £(730)m of gross outflows. Net outflows in the quarter totalled £(151)m, equivalent to (1.0)% of opening FUM.
- Net inflows to our MPS Platform business2 were encouraging at £146m, representing annualised organic net flows in the quarter of 13% of opening FUM, continuing the strong growth in the prior quarter.
- Investment performance contributed £0.2bn towards FUM in the quarter against a mixed market background.
Trading update
- The Group anticipates its full year performance will be in line with its expectations and expects a return to positive net flows later in the year.
Intention to move from AIM to the Main Market
Brooks Macdonald announces today its intention to apply to the Financial Conduct Authority for the Group's ordinary shares to be admitted to the Equity Shares (Commercial Companies) segment of the Official List and to trading on the Main Market of the London Stock Exchange ("Admission").
Since being founded in 1991 and listing on AIM in 2005, the Group has demonstrated a strong commercial and financial track record, scaled shareholder returns and built a broad and supportive shareholder base. The Board considers that Admission would further enhance the Group's corporate profile, as well as extending the opportunity to own its ordinary shares to a broader group of investors.
Brooks Macdonald does not intend to raise any funds or offer any new shares in connection with the Admission or the publication of the related prospectus. The Admission will be effected through an introduction of the Company's existing ordinary shares and is expected to occur no earlier than 4 March 2025 and by 31 March 2025, at which time the Group's listing on AIM is expected to be cancelled. Accordingly, the Group hereby gives notice of the intended cancellation of trading of its ordinary shares on AIM in accordance with Rule 41 of the AIM Rules for Companies.
Brooks Macdonald will make a further announcement in due course.
| Opening FUM as at 1 Oct 24 | Organic net flows | Investment performance | Closing FUM as at 31 Dec 24 | Organic net flows as % of opening FUM | Movement in FUM | |
|---|---|---|---|---|---|---|
| BPS | 8,835 | (232) | 79 | 8,682 | (2.6)% | (1.7)% |
| MPS Custody | 961 | (26) | 10 | 945 | (2.7)% | (1.7)% |
| MPS Platform | 4,554 | 146 | 73 | 4,773 | 3.2% | 4.8% |
| MPS total | 5,515 | 120 | 83 | 5,718 | 2.2% | 3.7% |
| Funds | 1,286 | (39) | 11 | 1,258 | (3.0)% | (2.2)% |
| UK total | 15,636 | (151) | 173 | 15,658 | (1.0)% | 0.1% |
| International | 2,271 | (43) | 46 | 2,274 | (1.9)% | 0.1% |
| Total | 17,907 | (194) | 219 | 17,932 | (1.1)% | 0.1% |
Net flows by service for the six months ended 31 December 20241
Six months ended 31 December 2024 (£m)
| Opening FUM as at 1 Jul 24 | Organic net flows | Total YTD investment performance | Closing FUM as at 31 Dec 24 | Organic net flows as % of opening FUM | Movement in FUM | |||
|---|---|---|---|---|---|---|---|---|
| Q1 | Q2 | Total YTD | ||||||
| BPS | 8,880 | (176) | (232) | (408) | 210 | 8,682 | (4.6)% | (2.2%) |
| MPS Custody | 974 | (26) | (26) | (52) | 23 | 945 | (5.3)% | (3.0%) |
| MPS Platform | 4,367 | 142 | 146 | 288 | 118 | 4,773 | 6.6% | 9.3% |
| MPS total | 5,341 | 116 | 120 | 236 | 141 | 5,718 | 4.4% | 7.1% |
| Funds | 1,323 | (51) | (39) | (90) | 25 | 1,258 | (6.8)% | (4.9)% |
| UK total | 15,544 | (111) | (151) | (262) | 376 | 15,658 | (1.7)% | 0.7% |
| International | 2,262 | (16) | (43) | (59) | 71 | 2,274 | (2.6)% | 0.5% |
| Total | 17,806 | (127) | (194) | (321) | 447 | 17,932 | (1.8)% | 0.7% |
Analysis of FUM gross flows by service in the quarters ending 30 September and 31 December 20241
| Q1 FY25 3 months ended 30 Sept | Q2 FY25 3 months ended 31 Dec | |||||
|---|---|---|---|---|---|---|
| Gross inflows | Gross outflows | Net flows | Gross inflows | Gross outflows | Net flows | |
| BPS | 160 | (336) | (176) | 166 | (398) | (232) |
| MPS Custody | 14 | (40) | (26) | 12 | (38) | (26) |
| MPS Platform | 311 | (169) | 142 | 317 | (171) | 146 |
| MPS total | 325 | (209) | 116 | 329 | (209) | 120 |
| Funds | 43 | (94) | (51) | 84 | (123) | (39) |
| UK total | 528 | (639) | (111) | 579 | (730) | (151) |
| International | 52 | (68) | (16) | 51 | (94) | (43) |
| Total | 580 | (707) | (127) | 630 | (824) | (194) |
1 All FUM numbers exclude the Defensive Capital Fund ("DCF"). The transfer of the investment management of DCF to RM Capital Markets Limited completed in November 2024. The DCF closing FUM at completion date was of £133.5 million.
2 Includes Brooks Macdonald Investment Solutions ("BMIS"), the Group's B2B offering for financial advisers.
www.brooksmacdonald.com / @BrooksMacdonald
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