Brooks Macdonald Group (BRK) Trading Update summary

Funds under management and trading performance

• Funds under management (FUM) rose 7.0% over FY24 to £18.0 billion, driven by strong investment performance and gross inflows.

• Net outflows for the year were £0.6 billion (3.7%), in line with guidance, but were offset by £1.8 billion in investment gains.

• Q4 saw net outflows of £0.2 billion, an improvement over the prior quarter, with positive investment performance of 1.4%, ahead of the 1.1% benchmark.

• Platform MPS grew to £4.4 billion, with annualised organic net new business at 13.0% of opening FUM in Q4.

• BPS experienced net outflows of £0.2 billion in Q4, but gross inflows increased by 33.1% as clients added to specialist products.

Client demand and business trends

• Q4 gross inflows reached £623 million, the highest quarterly inflow of the year, reflecting robust client demand.

• Outflows remained elevated but are expected to moderate with a more stable political and economic outlook.

• MPS Platform and MPS total both showed strong organic growth, with MPS Platform up 13.4% and MPS total up 8.7% for the year.

• UKIM discretionary FUM increased to £14.2 billion, with investment performance contributing significantly.

Leadership and strategic updates

• CEO Andrew Shepherd will retire, with Andrea Montague set to become CEO from 1 October 2024, pending regulatory approval.

• Full year results and the outcome of the strategic review of the International business will be reported on 12 September 2024.