Brooks Macdonald Group PLC has released its second quarter Funds under Management and Advice (FUM/A) update, reporting a 4.3% increase in FUM to £17.6 billion. The company experienced robust gross inflows of £0.6 billion, with a 1.5% increase from the prior quarter. However, elevated gross outflows, particularly in BPS and Funds, resulted in overall net outflows of £0.1 billion or 0.6%. The net outflows were offset by positive investment performance of 4.9% in the quarter.
As of 31 December 2023, the Group had £5.2 billion FUM/A with private clients, with £4.4 billion related to portfolios in the Group's investment management and £0.8 billion to portfolios with third-party investment managers. The company's investment performance for the quarter was in line with the benchmark MSCI PIMFA Private Investor Balanced Index, which increased by 5.0% in the period.
Brooks Macdonald's Platform MPS, including the B2B offering for financial advisers, BM Investment Solutions, grew to £3.9 billion, with organic net flows contributing 3.3%. The UKIM discretionary FUM increased by 5.0% over the quarter, primarily driven by the rally in markets seen in December 2023.
The company's half-year trading update indicated solid performance, with total FUM up 4.3%. Following organizational changes announced in October, the Group delivered a full-year cost saving of approximately £4 million. The Group expects its full-year underlying profit and underlying profit margin to be in line with market expectations.
Andrew Shepherd, CEO of Brooks Macdonald, expressed satisfaction with the 4.3% growth in the Group's FUM for the first half of the financial year, attributing it to the expertise and hard work of the company's employees. He also expressed confidence in the Group's ability to deliver on its ambitious growth strategy.
The Group intends to issue its preliminary statement of half-year results for the period ended 31 December 2023 on Thursday 7 March 2024, with an analyst meeting scheduled for the same day.
In summary, Brooks Macdonald Group PLC's second quarter FUM announcement and half-year trading update reflect a positive growth trajectory, with a focus on robust investment performance and strategic organizational changes to drive future success.