Brooks Macdonald Group today (17 July) said it will report the outcome of the strategic review of the international business across its three crown dependency offices on 12 September 2024, alongside its full year results. 

The group did not elaborate with any update in the trading update and its quarterly announcement of funds under management (FUM) for the fourth quarter of its financial year ended 30 June 2024.

The international business saw negative organic gross inflows of (10.5)% in Q4 vs Q3, compared to a 6.7% uplift for gross outflows over the same period, in the analysis of FUM gross flows by service over the twelve months. Figures for other measures shown in tables below.

Overall FUM for the group was up 7.0% over FY24 to £18.0bn, "with full year results expected to be in line with market expectations"

Andrew Shepherd (pictured), CEO of Brooks Macdonald said:"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."

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 recorded net outflows in the quarter of £0.2bn, which was an improvement on the prior quarter, and was more than offset by positive investment performance, resulting in closing FUM of £18.0bn (31 March 2024: £17.9bn).

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 £4.4bn (31 March 2024: £4.2bn) with annualised organic net new business in the quarter of 13.0% of opening FUM.

BPS experienced net outflows in the quarter of £0.2bn or 7.1% on an annualised basis (FY24 Q3: £0.2bn 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 which increased by 1.1% in the period.

For the financial year ended 30 June 2024, the group said it experienced net outflows of £0.6bn or 3.7%, in line with guidance. Investment performance contributed £1.8bn, leading to overall growth in the Group's closing FUM of 7.0% from the start of the financial year to £18.0bn (30 June 2023: £16.8bn).

Trading performance in the second half was solid, and the Group anticipates its full year results to be in line with market expectations.

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 Index1 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 Index1 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 538 557 496 589 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)%