Brooks Macdonald funds business hit by outflows as MPS platform grows
UKIM discretionary funds under management grew 0.6% over the quarter, with positive net flows driven by the firm’s MPS platform.
The firm recorded £70m in net outflows at a group level during the period, driven mainly by redemptions in its UK funds business. However, positive investment performance added £79m to its closing funds under management, which rose to £16.9bn.
Andrew Shepherd, CEO of Brooks Macdonald, said the net outflows at group level were driven by a volatile macroeconomic backdrop and high interest rates, which he said are leading clients to move towards higher cash holdings, debt repayment and investment into money market funds.
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UKIM discretionary funds under management grew 0.6% over the quarter, with positive net flows driven by the firm's MPS platform, which saw an annualised net flow rate of 16.9%, gaining a total of £133m.
«Our people continue to engage closely with our clients and introducers to help guide them through these difficult markets. In our view, the need for high quality financial advice and robust long-term investment management is now greater than ever,» Shepherd said.
«Given that, combined with the supportive demographic trends and the quality and commitment of our people, we remain confident in the group's ability to deliver our ambitious growth strategy.»
Brooks Macdonald said the pipeline for the 2024 financial year remains «robust», with continuing «strong» gross inflows, and positive net flows expected for the full year.
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