Brooks Macdonald Group (BRK) Trading Update summary

Trading and funds under management update

• Net outflows of £0.1 billion in Q1 FY25, representing 0.7% of FUM, as investor confidence was impacted by budget speculation and tax change rumors.

• Gross inflows declined 6.0% quarter-on-quarter, while gross outflows improved, down 5.1% sequentially.

• Positive investment performance offset net outflows, increasing closing FUM to £17.9 billion from £17.8 billion.

• MPS Platform, including BM Investment Solutions, grew to £4.6 billion with annualized organic net new business at 13.0% of opening FUM.

• Recently announced acquisitions of LIFT and Lucas Fettes support strategic focus on growth, client service, and efficiency.

Segment performance and flows

• UK segment saw net outflows of £111 million, but investment gains led to a closing FUM of £15.6 billion.

• International segment recorded net outflows of £16 million, with closing FUM at £2.3 billion.

• MPS Platform segment achieved net inflows of £142 million and investment gains of £45 million.

• Gross inflows fell across most services, notably BPS (-13.5%) and Funds (-17.3%), while International inflows rose 52.9%.

• Gross outflows decreased in most segments, with total outflows down 5.1% quarter-on-quarter.

Strategic and operational highlights

• Improved client retention across UK propositions contributed to business resilience.

• Acquisitions of LIFT and Lucas Fettes align with the strategy to enhance scale and reach.

• Exclusion of Defensive Capital Fund (DCF) from FUM figures after its disposal; DCF closed Q1 with £138 million FUM.

• CEO remains confident in unlocking the group's full potential despite market uncertainty.

• Brooks Macdonald continues to focus on investment performance and high-quality client service.