Net outflows for Brooks Macdonald during the first quarter of its financial year stood at £0.1bn as of 30 September, according to its trading update published today (16 October), representing 0.7% of total funds under management.
The firm attributed this to uncertainty ahead of the Autumn Budget later this month, with gross inflows falling 6% on a quarter-by-quarter basis.
However, gross outflows for the business reduced for the second quarter in a row, standing at 5.1%. Brooks’s MPS platform, which includes BM Investment Solutions, grew from £4.4bn to £4.6bn over the quarter, with annualised organic net new business rising by 13%.
See also: Brooks Macdonald snaps up financial planner LIFT
The funds arm of the business fell by 2.8% from £1.32bn to £1.3bn, with organic net new business falling by £51m but investment performance adding £14m over the period.
International funds under management remained relatively steady at £1.3bn as at the end of September, with FUM having increased by 0.4%. Similarly, the UK branch of the business increased by 0.6% overall, with organic net new business falling by 0.7% to £111m, but investment performance adding £203m.
Andrea Montague (pictured), CEO of Brooks Macdonald, said: “Our business has shown resilience through improved client retention across all our UK propositions.
“The considerable speculation around the upcoming Budget and rumoured changes to taxation and reliefs has clearly had an impact on investor confidence with lower gross inflows in the quarter.
“Our recently announced acquisitions of LIFT and Lucas Fettes demonstrate the pace at which we are delivering on our strategy, to reignite growth focusing on client service, reach, scale, and efficiency. I remain confident about unlocking the full potential of Brooks Macdonald.”
This story was written by our sister title, Portfolio Adviser
