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Brooks Macdonald Plc Q4 FUM 21-22

Brooks Macdonald Group plc today publishes a trading update and its quarterly announcement of Funds under Management for the fourth quarter of its financial year ended 30 June 2022.

Trading Update

The Group had a positive fourth quarter, benefiting from its strong client and intermediary relationships and resilient business model.  The Group anticipates full year results in line with market expectations, adjusted for recent market movements.

While the pipeline for FY23 is strong, conversion times continue to be affected by ongoing market uncertainty.

Quarterly Announcement of Funds under Management

The Group recorded positive net flows in the quarter of £0.3bn or 1.7%, an annualised rate of 6.7%.  This was offset by declining global markets, resulting in an overall 5.9% reduction in the Group’s closing FUM to £15.7bn (31 March 2022: £16.7bn).  Highlights in the quarter included:

·        UKIM Discretionary delivered net inflows in the quarter of £0.3 billion, corresponding to annualised net flows of 10.8%.  Platform MPS and BMIS continued to build momentum, with combined annualised net flows of 45.6% for the quarter.

  • Investment performance for the quarter delivered an FUM reduction of £1.3bn or 7.6%, in line with the MSCI PIMFA Private Investor Balanced Index.

During the financial year ended 30 June 2022, the Group achieved positive net flows of £0.8bn or 4.8%, representing an upswing of £1.1bn from the net flows recorded in FY21.  This was offset by the market downturn, leading to an overall decrease in the Group’s closing FUM of 4.8% from the start of the financial year (30 June 2021: £16.5bn).

Andrew Shepherd, CEO of Brooks Macdonald commented:

“I am delighted to report our fifth consecutive quarter of positive net flows, bringing our net flows rate up to 6.7% on an annualised basis.  This demonstrates sustained momentum and the robustness of our business model.  Against the backdrop of declining markets, it is more important than ever to stay connected with our clients and intermediaries, and I am proud of how our people have made a difference for them and helped deliver such strong results.”

 

Analysis of fund flows by service over the period

 

Quarter to 30 June 2022 (£m)

 

Opening FUM

1 Apr 22

Organic net new business

Investment performance in the period

Closing FUM

30 Jun 22

Organic net new business

Total mvmt

BPS

9,325

1

(745)

8,581

-%

(8.0)%

MPS

2,895

330

(212)

3,013

11.4%

4.1%

UKIM discretionary

12,220

331

(957)

11,594

2.7%

(5.1)%

Funds – DCF

484

(22)

(23)

439

(4.5)%

(9.3)%

Funds – Other

1,528

(3)

(107)

1,418

(0.2)%

(7.2)%

Funds total

2,012

(25)

(130)

1,857

(1.2)%

(7.7)%

UKIM total

14,232

306

(1,087)

13,451

2.2%

(5.5)%

International

2,426

(26)

(184)

2,216

(1.1)%

(8.7)%

Total

16,658

280

(1,271)

15,667

1.7%

(5.9)%

 

Total investment performance

(7.6)%

MSCI PIMFA Private Investor Balanced Index1

(7.4)%

 

 

Twelve months to 30 June 2022 (£m)

 

Opening FUM

Organic net new business

Total Inv.  Perf.

Closing

FUM

Total organic net new business

Total mvmt

1 Jul 21

Q1

Q2

Q3

Q4

Total

30 Jun 22

BPS

9,460

6

51

30

1

88

(967)

8,581

0.9%

(9.3)%

MPS

2,411

162

156

181

330

829

(227)

3,013

34.4%

25.0%

UKIM discretionary

11,871

168

207

211

331

917

(1,194)

11,594

7.7%

(2.3)%

Funds – DCF

478

(11)

2

(15)

(22)

(46)

7

439

(9.6)%

(8.2)%

Funds – Other

1,598

(15)

(23)

(20)

(3)

(60)

(120)

1,418

(3.8)%

(11.3)%

Funds total

2,076

(26)

(21)

(35)

(25)

(106)

(113)

1,857

(5.1)%

(10.6)%

UKIM total

13,947

142

186

176

306

810

(1,307)

13,451

5.8%

3.6%

International

2,512

(14)

12

3

(26)

(25)

(271)

2,216

(1.0)%

(11.8)%

Total

16,459

128

198

179

280

785

(1,578)

15,667

4.8%

(4.8)%

 

Total investment performance

(9.6)%

MSCI PIMFA Private Investor Balanced Index1

(6.3)%

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