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Brooks Macdonald AUM increases despite outflows in Q3 results

Gross outflows remained ‘elevated’ due to challenging macroeconomic backdrop


Brooks Macdonald Group’s funds under management increased by 2% over the last three months to the end of March – the third quarter of its financial year – to £17.9bn.

Meanwhile, gross inflows reached £500m, with the firm’s model portfolio service achieving a 5.2% uptick over the period to £5.2bn, with 0.9% (17.3% of the total increase) the result of organic net new business. Brooks Macdonalds’ Funds arm, however, fell by 4% to £1.6bn, with the net outflow lessened by positive investment performance, despite a 6.8% fall in net new organic business.

See also: Pre-tax profit increases by 18% for Brooks Macdonald in half-year results

UKIM Discretionary funds under management increased by 2.6% to £14.1bn at the end of March, despite a 1.2% fall in net new business.

Overall, Brooks Macdonald saw net outflows for the quarter of 1.7%, or £300m. This is despite positive investment performance over the period adding 3.7%, or £600m, to funds under management. Brooks Macdonald’s CEO Andrew Shepherd (pictured) said gross outflows remain “elevated” at £800m, as a result of the “prevailing macroeconomic backdrop” of high interest rates and inflation.

He said: “Today we report that FUM increased to £17.9bn over the course of the quarter as markets responded to the improving macroeconomic outlook. We have also seen encouraging flows in our Platform MPS and specialist BPS propositions demonstrating continued demand for our broad product range.

“However, interest rates are still high, placing continuing pressure on our clients, and we remain focused on meeting their needs through our innovative solutions and excellent client service.

“I remain confident in our future opportunity, and I want to extend my appreciation to all our stakeholders for their ongoing support, and to everyone at BM in particular for their unwavering commitment to our clients.”

See also: Tatton Asset Management records 28.4% net flow increase in full-year results

This story was written by our sister title Portfolio Adviser

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