6th consecutive quarter of positive FUM flows
FUM decreased 0.9% over Q1 of FY23 from £15.7bn on 30 Jun 22 to £15.5bn on 30 Sep 22. Impressively, a 6th consecutive quarter of net inflows was recorded (+£191m), achieved despite the last three quarters (Jan – Sep 22) being periods of significant volatility and market falls, which often correlate with weakening flows for investment managers.We remind readers that BM was one of the strongest performers in attracting and retaining client funds during calender-H1 of 2022. Our FUM forecast for the end-FY23 has reduced to £17.0bn from £17.9bn on a mark-to-market adjustment. This, coupled with a jump in the 10-year Gilt yield (the risk-free rate used in our DCF valuation) has reduced our fundamental valuation to 2,950p per share, still 63% above the current share price. We also flag that BM’s PER of 14.5 is well below a peer group median of 17.3.
Brooks MacDonald Group is an independent investment management firm. Co. has four segments: Investment Management, which provides discretionary investment management to private investors, pension funds, charities and trusts through Bespoke Portfolio Service and Managed Portfolio Service; Financial Planning, which delivers both fee based financial advice to high net-worth families, and employee benefit consultancy to small and medium sized employers throughout the U.K.; Funds and Property Management, which engages in new investment across the range of funds with the Defensive Capital Fund; and International, which includes the Channel Islands business discretionary funds under management.
Equity Development enables companies to become better understood and supported by investors. Since our launch in 1996 we have consistently focused on helping our clients improve their communication and relationships with both existing and potential shareholders. Our clients have come from a wide variety of sectors and domiciles, are both private and quoted and range in size from micro-cap to $multi-billions. We offer free access to company research notes written by experienced analysts. These notes include detailed forecasts, financial models and a fair value. We host regular Private Investor Forums at which investors have the opportunity to hear company directors present, and to ask questions. These are free to attend. We broadcast live Webinars with company management that include active Q&A. We also make the recordings available online. We arrange face to face meetings between private investors and company management. We are active users of Twitter, commenting daily on company news, share price moves, Directors’ Dealings, Equity Development Research Notes & Events.
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