Financial review
Table 2 – Movements in funds under management
Revenue Table 3 – Breakdown of the Group’s total revenue
Year ended 30 June 2024 (£m)
Total organic net new business
Opening
Organic net new business
Closing
FUM 1 Jul 23
Total inv. perf.
FUM 30 Jun 24
Total mvmt
FY24 £m
FY23 £m
Change %
Q1
Q2
Q3
Q4 Total
BPS
8,527
(98)
(94)
(205)
(158)
(555)
908
8,880 (6.5)% 4.1%
92.1
Fee income
91.5 0.7%
MPS Custody MPS Platform
966
(14)
(21)
(20)
(25)
(80)
88
974
(8.3)% 0.8% 13.4% 25.2% 8.7% 19.9% (1.3)% 9.5%
Transactional and FX income Financial planning income Interest income Total revenue
3,489 4,455 12,982
147 133
121
65 45
135 110
468 388
410
4,367 5,341 14,221
15.3
13.3 15.0%
MPS total
100
498
UKIM discretionary
35
6
(160) (112) (272)
(48) (76)
(167) (337) (504)
1,406
8.2
6.6 24.2% 12.4 2.4% 123.8 3.6%
Funds
1,708
(78) (43)
(71) (65)
174
1,545 (19.7)% (9.5)%
12.7
UKIM total
14,690
(124)
1,580 15,766 (3.4)% 7.3%
128.3
The Group’s revenue for FY24 increased by 3.6% from £123.8 million to £128.3 million. Fee income was slightly up on last year to £92.1 million, driven by a combination of the impact from flows, product mix, and investment performance. Transactional and FX income increased by 15.0% on the prior year due to higher trading volumes in the year and the impact of asset allocation strategies in response to the volatile market during the year. Financial planning fees totalled £8.2 million in FY24, with an additional £1.8 million of revenue recognised in the current year from the full period impact of the Integrity Wealth Solutions Limited and Adroit Financial Planning Limited businesses acquired in FY23. Interest income, net of increasing amounts paid out to clients on cash holdings, was up by £0.3 million to £12.7 million in the current year as a result of the continued rise in the Bank of England base rates during the year.
International
2,157
(27)
(33)
(22)
(30)
(112)
217
2,262
(5.2)% 4.9%
Total
16,847
(70)
(98)
(294)
(154)
(616)
1,797
18,028
(3.7)% 7.0%
Total investment performance
10.7%
FUM movement in the year Table 2 shows the opening and closing FUM position and the flows for the year broken down by segment and by the key services within UK Investment Management (“UKIM”). FUM increased by £1.2 billion or 7.0% during the year, to £18.0 billion at 30 June 2024 (30 June 2023: £16.8 billion). The Group’s broad product offering and continued focus on serving clients in a changing economic environment has resulted in robust gross inflows of £2.3 billion for the year, however, gross outflows were elevated driven by the prevailing backdrop of market volatility and higher interest rates continuing to affect client behaviour, resulting in net outflows for the period of £0.6 billion.
Investment performance for the year added £1.8 billion to the closing FUM, representing an increase of 10.7%. Performance in absolute terms over the 10-year period, across all our risk profiles, is very strong delivering a range of +30% (for low risk) through to +97% for our highest risk strategy (all net of fees). The last 12 months to the end of June 2024 has seen this outperformance compared to peers cemented. All 5 risk profiles have delivered outstanding absolute returns for clients and outperformed the ARC Private client index series. BPS experienced net outflows of £0.6 billion or 4.1% during the year, as clients withdrew funds to repay debt or to hold higher cash balances. The gilts offering launched at the end of the last financial year within the BPS product range saw strong demand, enabling clients to take advantage of higher interest rates
whilst avoiding equity risk. Our Decumulation specialised product, offering a solution to meet clients’ income requirements by shielding their portfolio from downturn in the early years of withdrawal, grew by 6.3% in the year. Platform MPS, including the Group’s B2B offering for financial advisers, BM Investment Solutions (“BMIS”), grew to £4.4 billion, an increase of 25.2%, with organic net flows contributing 13.4%. Funds saw net outflows during the period, driven by the wider market conditions and in line with the trend observed across the sector. International FUM grew moderately by 4.9% over the period with net outflows of £0.1 billion, offset by investment performance.
32 Brooks Macdonald Group plc Annual Report and Accounts 2024
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