Sign up Australia
Proactive Investors - Run By Investors For Investors

Numis upgrades Brooks Macdonald to ‘buy’ after solid end to fiscal year

Brooks Macdonald now has £12.4bn in funds under management – almost 20% more than it had this time last year
money tree
Shares have fallen by more than 10% in the past few weeks

Brooks Macdonald Group PLC (LON:BRK) shares edged higher on Thursday after reporting a 6.5% rise in funds under management in the final quarter of its fiscal year, prompting an upgrade from City broker Numis.

The investment manager now has £12.4bn in funds under management – almost 20% more than it had this time last year.

Year of impressive FUM growth​

Net inflows during the three months to the end of June totalled £214mln, ahead of Numis’ forecasts of £198mln. Investment performance – the return on the portfolio – totalled £542mln in the quarter.

“I am pleased to report that a solid final quarter completes another year of impressive FUM growth for Brooks Macdonald,” said chief executive Caroline Connellan.

“While markets have fluctuated over the second half of our financial year, we have again generated strong net new business and delivered robust investment performance.

“Our organic growth has been largely driven by the depth of the relationships we have built with our clients and the advisers who support us.  This, combined with rigorous cost discipline, will enable us to deliver sustainable growth and improved operating margins in the medium term.”

Citing recent share price weakness – the stock is down more than 10% over the past month – Numis upgraded Brooks to ‘buy’ from ‘hold’ and maintained its 2,300p target price.

Shares rose 2% to 1,825p in early afternoon trading.

View full BRK profile View Profile

Brooks Macdonald Group plc Timeline

Related Articles

July 12 2018
There’s a good chance one (or all) might end up being the future for Braveheart.
June 27 2018
The mineral resources investor thinks the macroeconomic environment is favourable to the mining sector. It has four investments that over the next 18 months or so could see it repeat the success it had with its investment in the Prognoz silver project in Russia.

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use