Positive performance offsets £100m Brooks Macdonald outflows as FUM ticks up 4.3%
Andrew Shepherd (pictured), CEO of Brooks Macdonald
In a fourth-quarter trading update published today (17 January), the wealth manager said positive investment performance of 4.9% over the period managed to offset outflows, resulting in FUM growing by 4.3% to £17.6bn.
The outflows mostly affected the firm's bespoke portfolio service (BPS) and funds business, with clients withdrawing funds to «repay debt or to hold higher cash balances», the firm said.
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Brooks' platform model portfolio service, including its investment solutions division, grew to £3.9bn over the quarter, up 7.3%, of which organic net flows contributed 3.3%.
The recently launched gilts offering proved successful in the fourth quarter, generating 44.7% of net new business, increasing its FUM to around £200m in its first year.
Total FUM for the UK investment management discretionary arm rose 5% between October and December, primarily driven by the rally in markets seen in December 2023, the firm said.
The company also noted the delivery of £4m in cost savings over the year, largely due to a round of job cuts in October, which saved the company £3m.
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CEO Andrew Shepherd said there was a «healthy demand» across the company's range of products and services, despite a «challenging period for both the economy and financial markets».
«These results reflect our capabilities as a group to deliver what people value — the guidance and reassurance of trusted advice and robust long-term investment management,» he added.
«Given those capabilities and the opportunities we can see ahead, I remain confident in our ability to deliver on the group's ambitious
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