Brooks Macdonald investment performance ‘more than offsets’ outflows

Brooks Macdonald Group PLC on Wednesday said funds under management rose in its second quarter, despite suffering outflows as it grapples with a volatile market.

The London-based wealth manager said it held funds under management totalling £17.58 billion at December 31, up 4.3% from £16.86 billion at October 1.

During the quarter that ended on December 31, Brooks Macdonald said it delivered ‘robust’ gross net inflows of around £600 million, up 1.5% from the prior quarter.

Gross outflows rose to approximately £700 million, resulting in overall net outflows for the period of £100 million.

Brooks Macdonald also said its investment performance for the quarter was positive at 4.9%, largely in line with the benchmark MSCI PIMFA Private Investor Balanced Index which rose 5.0%.

This positive investment performance, Brooks Macdonald said, ‘more than offset’ the net outflows.

Chief Executive Officer Andrew Shepherd said: ‘During a challenging period for both the economy and financial markets, we continued to see healthy demand across our range of products and services...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.’

Looking ahead, Brooks Macdonald ‘expects momentum on gross inflows to continue across the product range in the second half, with the level of both gross outflows and the resulting full year net flows dependent in part on macroeconomic factors.’

It anticipates a full-year underlying profit and profit margin in line with market expectations.

‘Given [our] capabilities and the opportunities we can see ahead, I remain confident in our ability to deliver on the group’s ambitious growth strategy,’ commented CEO Shepherd.

Shares in Brooks Macdonald were down 2.6% at 1,845.00 pence on Wednesday in London.

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