Strategic Report
Governance Report
Financial Statements
Other Information
£34.1m Underlying profit before tax increased from the FY23 figure of £30.3m £18.0bn FUM up 7.0% in the year from £16.8bn at 30 June 2023
£330 million for the year. This reflects both the robust current and potential growth of this product at Brooks Macdonald and within the broader industry. BM Investment Solutions (“BMIS”), our business-to-business offering, collaborates with adviser firms to provide tailored services aligned to their objectives. Once again, BMIS demonstrated good performance, achieving net inflows of approximately £140 million. In our Bespoke Portfolio Service (“BPS”) product, UKIM has experienced significant growth in our specialist offerings – Responsible Investing Service, Decumulation, and Court of Protection, and especially with our Gilts product which was introduced to meet client demand for their portfolios to take advantage of higher interest rates whilst avoiding equity risk. However, beyond these specialist offerings, BPS saw net outflows due to a broader market trend, compounded by the impact of higher interest rates and macroeconomic uncertainty. Despite our funds business facing challenges this year, with net outflows similar to much of the sector, we remain optimistic about the potential for growth in our multi-asset funds. We are confident in the actions we have already taken to drive medium-term growth and are actively reviewing additional steps to further strengthen our position. International In our interim results in March 2024, we announced a strategic review of the International business following performance that had been behind plan. I would like to thank the International team for their unwavering commitment during this time.
We conducted a thorough review aimed at determining how to maximise value from the business. It has been concluded that the sale of the International business is in the best interests of the Group as it simplifies the Group’s operations to focus on it’s core activities of high quality investment management and financial planning within the UK. Distribution We operate in a significant and growing market and have traditionally leveraged our relationships with advisers to distribute our products. In recent years we have recognised the growing opportunity in distributing direct to clients, especially where we have a financial planning relationship. As at 30 June 2024, the Group had £5.3 billion Funds under Management or Advice (“FUM/A”) with private clients who deal with the Group directly. £4.5 billion related to portfolios in the Group’s investment management and £0.8 billion to portfolios with third-party investment managers. We made two senior appointments to newly created roles in the year to reflect this targeted distribution with Alex Charalambous joining the Group as Head of Wealth and, since year end, Greg Mullins joining as Head of Adviser Solutions. Alex is leading the Group’s advice-led integrated wealth management offering for private clients and Greg will focus on delivering exceptional service to the adviser community, both supporting our ambitious growth plan.
During the second half of the year, we saw an improvement for UK companies benefitting from better sentiment, signs of political stability and economic improvement. Our clients continued to benefit from our rigorous investment process, which provides diversified portfolios for their long-term investment horizons. Our investment strategies outperformed their relevant ARC peer group indices for the year and maintained strong results over the 10-year period. Looking ahead, we are encouraged by the recent falls in inflation and anticipate interest rate cuts across Western economies that should be supportive of asset prices. Additionally, the change in government in the UK is seen to encourage international asset allocators to review exposure to the region. We are retaining our slight overweight position to equity markets but maintaining our balance between value and growth investment styles as we recognise diversification as critical in the current uncertain outlook. Review of business performance UK Investment Management Across UK Investment Management (“UKIM”), our people have once again worked incredibly hard to provide exceptional levels of support to their clients and intermediaries resulting in strong gross inflows of £2.0 billion in the year. The Platform Managed Portfolio Service (“PMPS”) was the strongest performer, achieving net inflows of approximately
Read more about how we engage with our stakeholders on pages 21 to 25 Read more about our people on pages 45 to 48
Brooks Macdonald Group plc Annual Report and Accounts 2024
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