Wealth manager Brooks Macdonald suffered marginal net redemptions of £70m in its first quarter to the end of September, but anticipates flows to turn positive over the course of the financial year.
The firm attributed the redemptions to a macro backdrop of market volatility and high interest rates, which it said impacted client behaviour and resulted in short term pressure on flows.
The redemptions were particularly driven by Brooks’ UK funds business which saw 4.6% pulled by investors.
Brooks’ model portfolio service (MPS) pulled in £147m net new business, a 16.9% annualised net flow rate.
Meanwhile, funds under management (FUM) ticked up to £16.86bn from £16.85bn at the start of the period, with £79m positive investment performance offsetting the overall net redemptions.
Last month, the firm warned it anticipated short term outflows in Q1 as a result of the macroeconomic environment, but still expects flows to recover for FY24 as a whole.
Andrew Shepherd (pictured), CEO of Brooks Macdonald, said: “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.
“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.”
PA EVENT – Winter Congress: 22nd November | RSVP via email
Hosted at The South Lodge Hotel. Transport and accommodation will be provided for the duration of the event.
Embrace the winter season by joining us at the Winter Congress hosted at The South Lodge Hotel. Engage in thought-provoking discussions, explore the latest trends, and forge valuable connections with wealth management leaders. RSVP by emailing us and secure your spot at this exclusive event.
Sponsors include Baillie Gifford, BlackRock, Cantab Asset Management, Columbia Threadneedle, Gravis, Jupiter AM, J O Hambro, T Rowe Price and eight more to be announced.