Brooks Macdonald has hailed performance-driven growth in funds under management as a “decent” result for the business, as net flows halve year-on-year.
The DFM took in net new business of £166m during the three months to 31 March, an improvement on its performance in the previous quarter when it only attracted £88m.
But positive net flows this quarter were more than half of the £343m net inflows reported in the same period from the previous year.
Total FUM was up 7.9% at £12.8bn from £11.7bn a year ago.
Chief executive Caroline Connellan (pictured) said the group delivered “decent” organic growth over the period considering UK client sentiment remained “subdued” due to ongoing Brexit worries.
“Although client sentiment remained subdued in the UK against the backdrop of macroeconomic and political uncertainty, in that context we maintained decent organic growth, reflecting the strength of our client and adviser relationships.”
Performance drives FUM growth
Brooks Macdonald’s UK discretionary investment business was the driver of new business over the period, attracting £152m of net inflows. However, performance related gains of £742m were chiefly responsible for the UK investment team’s 9% leap in funds under management from £10.2bn to £11.1bn between December and March.
Its Channel Islands business returned to positive net flows of £14m, a development Connellan highlighted as “encouraging”.
The international business has been plagued by legacy issues related to its acquisition of Spearpoint Capital and suffered client attrition after losing a key client-facing team.
At the start of this year Brooks Macdonald said it would be cutting 50 jobs, predominantly in administration and IT, a move which some found unsurprising after a volatile 2018.
Shares in Brooks Macdonald were trading 5% higher on the back of its quarterly update at 1,828p.
