Brooks Macdonald publish update for the first quarter of its financial year

by | Oct 13, 2022

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Brooks Macdonald Group plc today published an update on its Funds under Management for the first quarter of its financial year, the three months ended 30 September 2022.

During the first quarter of the financial year, the Group recorded positive net flows of £0.2 billion, with continued momentum in new business against a backdrop of volatile markets.  The further decline in global markets at the end of September offset the positive net flows leading to a 0.9% decrease in the Group’s closing FUM to £15.5 billion (30 June 2022: £15.7 billion).

Highlights for the quarter included:

  • The Group delivered strong positive net flows, continuing the trend reported in prior quarters and achieving an annualised rate of 4.9%, in line with the previous financial year.
  • UKIM discretionary FUM had positive net flows of £0.2 billion (an annualised rate of 8.1%), driven by MPS Platform, which saw an annualised net flow rate of 47.3%.  MPS Platform includes the Group’s business-to-business offering, BM Investment Solutions.
  • Overall investment performance for the quarter recorded a reduction of £0.3 billion or 2.1%, ahead of the MSCI PIMFA Private Investor Balanced Index which declined by 3.6% in the period.

While the pipeline for FY23 remains robust, market conditions are resulting in some clients taking longer to commit funds.

Andrew Shepherd, CEO of Brooks Macdonald commented: Despite the difficult political and economic conditions in our first quarter, net flows were running at an annualised 4.9% – an excellent result, continuing the trend seen in the previous financial year.

 “Given the challenging backdrop, high quality financial advice and robust long-term investment management are needed now more than ever.  Our net flows for this quarter are a credit to everyone at Brooks Macdonald, who engaged actively with our clients and intermediaries to support them in navigating these volatile markets. 

“We remain confident in our expectations for new business flows and in the Group’s ability to deliver our ambitious growth strategy.”

Analysis of fund flows by service over the quarter 

Quarter to 30 September 2022 (£m)

 

Opening FUM

1 Jul 22

Organic net new business

Investment performance in the period

Closing FUM

30 Sep 22

Organic net new business

Total mvmt

BPS

8,581

(6)

(231)

8,344

(0.1)%

(2.8)%

MPS Custody

960

(3)

(9)

948

(0.3)%

(1.2)%

MPS Platform

2,053

243

(34)

2,262

11.8%

10.2%

MPS total

3,013

240

(43)

3,210

8.0%

6.5%

UKIM discretionary

11,594

234

(274)

11,554

2.0%

(0.3)%

Funds – DCF

439

(14)

(18)

407

(3.2)%

(7.3)%

Funds – Other

1,418

(20)

6

1,404

(1.4)%

(1.0)%

Funds total

1,857

(34)

(12)

1,811

(1.8)%

(2.5)%

UKIM total

13,451

200

(286)

13,365

1.5%

(0.6)%

International

2,216

(9)

(48)

2,159

(0.4)%

(2.6)%

Total

15,667

191

(334)

15,524

1.2%

(0.9)%

 

Total investment performance

(2.1)%

MSCI PIMFA Private Investor Balanced Index1

(3.6)%

1Capital-only index.

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