Business
Trading Update
Trading Update.
About this update from Brooks Macdonald Group Plc
[{"type":"text","content":"\n \nRNS Number : 9543Z Brooks Macdonald Group PLC 16 January 2020 \n\n16 January 2020\n \nBROOKS MACDONALD GROUP PLC\n \nHalf Year Trading Update and Quarterly Announcement of Funds under Management\n \nNotice of Half Year results\n \n\"Good progress on strategy delivery, on track to meet margin and profit expectations\"\n \nBrooks Macdonald Group plc (\"Brooks Macdonald\" or the \"Group\") today publishes its Trading Update for its half year ended 31 December 2019, together with an update on discretionary Funds under Management (\"FUM\") for the second quarter.\n \nRevenue, underlying profit and underlying profit margin are all ahead of the same period last year and in line with expectations.\n \nTotal FUM remained stable over the half year ending the period at £13.1 billion (30 June 2019: £13.1 billion). During the quarter ended 31 December 2019, total FUM decreased by 1.5% (30 September 2019: £13.3 billion).\n \nUKIM discretionary FUM, comprising our BPS and MPS services, grew by 1.3% during the first half driven by continued strong investment performance ahead of the MSCI WMA Private Investor Balanced Index. Net flows in this part of the business were broadly in line with expectations, given softer client sentiment in the light of the political and macroeconomic backdrop, and the Group's focus on efficiency and business quality.\n \nWithin Funds, our Defensive Capital Fund continued to perform well, with FUM reaching the milestone of £700 million, growing by 6.6% during the first half and 2.0% during the quarter.\n \nDuring the second quarter, the Group's investment management agreement for the Grosvenor Wealth Management funds was terminated. This accounted for £244 million of FUM corresponding to annualised revenues of circa £0.6 million. This followed extensive discussions between Brooks Macdonald and Grosvenor over the purchase of the sponsorship company attached to the Grosvenor funds, where we were unable to reach a satisfactory commercial arrangement that met our stated acquisition criteria.\n \nInternational FUM performed in line with expectations ending the first half up by 1.8%, demonstrating the continuing reinvigoration of the business.\n \nCaroline Conne...