16th Jul 2020 12:29
(Alliance News) - Brooks Macdonald Group PLC on Thursday announced it had a "positive" fourth quarter, and it anticipates a good full-year result, ahead of last year's.
In the fourth quarter of its financial year, ended June 30, the London-based investment management firm finished with a total of GBP13.7 billion in funds under management. This is an increase of 12% from GBP12.2 billion on March 31.
This beat the 10.6% postive performance of the MSCI PIMFA Private Investor Balanced Index during the same period.
Brooks Macdonald's FuM was supported by higher gross inflows than in prior quarters, resulting in a reduced net outflow of GBP100 million. Positive investment performance made up all the difference, contributing GBP1.5 billion.
Back in June, Brooks Macdonald announced the acquisition of Lloyds Banking Group PLC's Channel Islands wealth management and funds business adding up to GBP1 billion in FuM to the business.
The acquisition is expected to complete during the first half of the current financial year and represents significant step forward for the group in achieving its growth ambitions, Brooks Macdonald said.
The UKIM Funds business during the quarter saw net outflows of GBP100 million, or 3.5% This was more than offset by investment performance of GBP300 million, taking the closing value of the funds business to over GBP2.0 billion, an increase of 10%.
The international business recorded improved flows during the quarter and saw an investment performance of GBP200 million, or 11%, bringing the closing FuM position to GBP1.6 billion.
The group said: "This is further evidence of the continued reinvigoration of the business which is being augmented by the recently announced acquisition of Lloyds Bank International's Channel Islands wealth management and funds business."
Brooks Macdonald FuM has increased by 4.1%, or GBP500 million, over the course of the financial year. This reflects the acquisition of assets from Cornelian Asset Managers in February this year, totalling GBP1.2 billion, as well as a positive investment performance of GBP100 million which was partly offset by net outflows of GBP800 million.
The full-year investment performance of 1.0% beat the comparative MSCI index, which declined 3.5%.
Chief Executive Caroline Connellan said: "We achieved strong investment performance in difficult, volatile markets, protecting our clients' wealth. We also delivered improved net flows in our core discretionary business in the UK and continued to reinvigorate International."
Brooks Macdonald shares were up 2.5% at 1,635.00 pence each on Thursday at midday.
Brooks Macdonald on Thursday also announced the appointment of Robert Burgess as a non-executive director, effective August 1.
Burgess is a non-executive director of OakNorth Bank and non-executive chair of Investment & Fund. He is a former Lloyds executive who also served as CEO of Alliance Trust Savings, part of Alliance Trust PLC.
Brooks Macdonal Chair Alan Carruthers said: "I am delighted to welcome Robert to the board. His experience in financial services, including some highly innovative firms, will be extremely valuable to Brooks Macdonald as we drive forward our growth strategy."
By Greg Roxburgh; [email protected]
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