Quarterly Announcement of FUM and Trading Update

About this update from Brooks Macdonald Group Plc

17 July 2024   BROOKS MACDONALD GROUP PLC   Quarterly Announcement of FUM and Trading Update   Notice of Full Year results   "FUM up 7.0% over FY24 to £18.0 billion, with full year results expected to be in line with market expectations"   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 fourth quarter of its financial year ended 30 June 2024.   Andrew Shepherd, CEO of Brooks Macdonald commented: " I am pleased to report that FUM increased to £18.0 billion. We remained dedicated to serving our clients in a changing economic environment. This focus resulted in strong gross inflows, with high demand for wealth management services that provide solutions through the entire investor lifecycle. Outflows have remained elevated but with a more certain political backdrop, lower inflation and the increased likelihood of a reduction in interest rates, we anticipate that these will moderate. We will stay focused on meeting our clients' investment needs ."     Quarterly Announcement of Funds under Management The Group recorded net outflows in the quarter of £0.2 billion, which was an improvement on the prior quarter, and was more than offset by positive investment performance, resulting in closing FUM of £18.0 billion (31 March 2024: £17.9 billion).   Highlights in the quarter included: ·    Group gross inflows in the fourth quarter were £623 million, the highest of any quarter in the financial year, reflecting strong client demand for our broad proposition set. ·    Platform MPS, including the Group's B2B offering for financial advisers, BM Investment Solutions ("BMIS"), grew to £4.4 billion (31 March 2024: £4.2 billion) with annualised organic net new business in the quarter of 13.0% of opening FUM. ·    BPS experienced net outflows in the quarter of £0.2 billion or 7.1% on an annualised basis (FY24 Q3: £0.2 billion or 9.6%). BPS gross inflows increased by 33.1% in the fourth quarter as clients added funds to our specialist products. ·    Investment performance for the quarter was relatively strong at 1.4%, ahead of the benchmark 1 which increased by 1.1% in the period .   Full Year Trading Update For the financial year ended 30 June 2024, the Group experienced net outflows of £0.6 billion or 3.7%, in line with guidance.  Investment performance contributed £1.8 billion, leading to overall growth in the Group's closing FUM of 7.0% from the start of the financial year to £18.0 billion (30 June 2023: £16.8 billion). Trading performance in the second half was solid, and the Group anticipates its full year results to be in line with market expectations. In June 2024, the Group announced the retirement of Andrew Shepherd as Group CEO and the appointment of Andrea Montague in this role from 1 October 2024, subject to regulatory approval. The Group will report full year results and the outcome of the strategic review of the International business on 12 September 2024.   Analysis of FUM net flows by service over the quarter   Quarter to 30 June 2024 (£m)   Opening FUM 1 Apr 24 Organic net new business Investment performance in the period Closing FUM 30 Jun 24 Organic net new business Total mvmt   BPS 8,913 (158) 125 8,880 (1.8)% (0.4)%   MPS Custody 989 (25) 10 974 (2.5)% (1.5)%   MPS Platform 4,164 135 68 4,367 3.2% 4.9%   MPS total 5,153 110 78 5,341 2.1% 3.6%   UKIM discretionary 14,066 (48) 203 14,221 (0.3)% 1.1%   Funds 1,587 (76) 34 1,545 (4.8)% (2.6)%   UKIM total 15,653 (124) 237 15,766 (0.8)% 0.7%   International 2,274 (30) 18 2,262 (1.3)% (0.5)%   Total 17,927 (154) 255 18,028 (0.9)% 0.6%     Total investment performance 1.4% MSCI PIMFA Private Investor Balanced Index 1 1.1%   Analysis of FUM net flows by service over the twelve months   Twelve months to 30 June 2024 (£m)     Opening FUM Organic net new business   Total Inv. Perf. Closing FUM   Organic net new business Total mvmt     1 Jul 23 Q1 Q2 Q3 Q4 Total FY 30 Jun 24 FY FY   BPS 8,527 (98) (94) (205) (158) (555) 908 8,880 (6.5)% 4.1%   MPS Custody 966 (14) (21) (20) (25) (80) 88 974 (8.3)% 0.8%   MPS Platform 3,489 147 121 65 135 468 410 4,367 13.4% 25.2%   MPS total 4,455 133 100 45 110 388 498 5,341 8.7% 19.9%   UKIM discretionary 12,982 35 6 (160) (48) (167) 1,406 14,221 (1.3)% 9.5%   Funds 1,708 (78) (71) (112) (76) (337) 174 1,545 (19.7)% (9.5)%   UKIM total 14,690 (43) (65) (272) (124) (504) 1,580 15,766 (3.4)% 7.3%   International 2,157 (27) (33) (22) (30) (112) 217 2,262 (5.2)% 4.9%   Total 16,847 (70) (98) (294) (154) (616) 1,797 18,028 (3.7)% 7.0%       Total investment performance 10.7% MSCI PIMFA Private Investor Balanced Index 1 11.4% 1 MSCI PIMFA Private Investor Balanced Index, a capital-only index.     Analysis of FUM gross flows by service over the twelve months   Twelve months to 30 June 2024 (£m)   Organic gross inflows Q4 vs Q3 Organic gross outflows Q4 vs Q3   Q1 Q2 Q3 Q4 Total YTD Inc/(dec) Q1 Q2 Q3 Q4 Total YTD Inc/(dec) BPS 192 173 139 185 689 33.1% (290) (267) (344) (343) (1,244) (0.3)% MPS Custody 15 15 19 21 70 10.5% (29) (36) (39) (46) (150) 17.9% MPS Platform 276 317 281 325 1,199 15.7% (129) (196) (216) (190) (731) (12.0)% MPS total 291 332 300 346 1,269 15.3% (158) (232) (255) (236) (881) (7.5)% UKIM discretionary 483 505 439   531 1,958 21.0% (448) (499) (599)   (579) (2,125) (3.3)% Funds 55 52 57 58 222 1.8% (133) (123) (169) (134) (559) (20.7)% UKIM total 538 557 496 5 89 2,180 18.8% (581) (622) (768) (713) (2,684) (7.2)% International 44 34 38 34 150 (10.5)% (71) (67) (60) (64) (262) 6.7% Total 582 591 534 623 2,330 16.7% (652) (689) (828) (777) (2,946) (6.2)%       Notice of Full Year results The Group intends to announce its results for the year ended 30 June 2024 on Thursday 12 September 2024.   Enquiries to: Brooks Macdonald Group plc Andrew Shepherd, CEO Andrea Montague, Chief Financial Officer   www.brooksmacdonald.com 020 7927 4816 Singer Capital Markets (Nominated Adviser and Joint Broker) Charles Leigh-Pemberton / James Moat   020 7496 3000 Investec Bank plc (Joint Broker) Chris Baird / David Anderson   020 7597 5970   FTI Consulting Katie Bell   [email protected] 07976 870961   Notes to editors Brooks Macdonald Group plc, through its various subsidiaries, provides leading wealth management services in the UK and internationally. The Group, which was founded in 1991 and began trading on AIM in 2005, had discretionary Funds under Management of £18.0 billion as at 30 June 2024. Brooks Macdonald offers outsourced discretionary investment management for intermediaries and advice-led integrated wealth management for private clients. The Group also acts as fund manager to a range of onshore and international funds. The Group has fourteen offices across the UK and Crown Dependencies including London, Birmingham, East Anglia, Exeter, Leeds, Manchester, Nuneaton, Southampton, Tunbridge Wells, Scotland, Wales, Jersey, Guernsey and Isle of Man. Forward-looking statements This announcement may include statements, beliefs or opinions that are, or may be deemed to be, "forward-looking statements". These forward-looking statements may be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "plans", "projects", "anticipates", "targets", "aims", "continues", "expects", "intends", "hopes", "may", "will", "would", "could" or "should" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. No representation or warranty is made that any of these statements or forecasts will come to pass or that any forecast results will be achieved. Forward-looking statements may and often do differ materially from actual results. Any forward-looking statements contained in the announcement speak only as of their respective dates, reflect Brooks Macdonald's current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to Brooks Macdonald's business, results of operations, financial position, liquidity, prospects, growth and strategies. Except as required by any applicable law or regulation, Brooks Macdonald expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained in this announcement or any other forward-looking statements it may make whether as a result of new information, future developments or otherwise.   LEI: 213800WRDF8LB8MIEX37   www.brooksmacdonald.com / @BrooksMacdonald  

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