Brooks Macdonald on track to meet full-year expectations

(Sharecast News) - Brooks Macdonald reported a 7% increase in funds under management and advice (FUMA) to £18.6bn for the three months ended 31 March on Wednesday, driven by market movements and the addition of advised-only assets through acquisition. The London-listed wealth management group said it was on track to meet full-year expectations, and anticipated a return to positive net flows later in the year.

Net outflows for the quarter stood at £129m, an improvement on the £151m recorded in the prior quarter.

Outflows from the Bespoke Portfolio Service moderated to £211m from £232m, reflecting improved flows in core and retirement products, though gilt redemptions remained elevated as clients met tax liabilities.

Managed Portfolio Service platform flows remained robust, with net inflows of £148m during the quarter and year-to-date annualised growth of 13%.

The MPS platform also benefited from the acquisition of LIFT, which added £788m of funds under management, bringing total MPS platform FUM to £5.6bn.

Brooks Macdonald said the deal also contributed to a sharp increase in advised-only assets, which rose to £2.55bn from £1.73bn at the end of December.

Despite the addition of new assets, market volatility reduced total funds under management by £273m over the quarter.

Brooks Macdonald said its long-term investment performance remained strong.

The group said it expected to report full-year results in line with market expectations, and would provide its next update on 10 July, ahead of full-year results due on 4 September.

"Since becoming CEO on 1 October, I have led the transformation of Brooks Macdonald, from the composition of the group through to the way we work with our advisers and clients, and I am confident this will deliver improved performance including net flows," said chief executive officer Andrea Montague.

"We are executing our strategy to reignite growth; we have expanded our client base, strengthened the senior leadership team and broadened our product offering.

"The integration of our financial planning businesses is progressing well, and we remain focused on improving asset retention and driving new business growth."

Montague said that amid the current geopolitical uncertainty and heightened market volatility, Brooks Macdonald's investment team was continuing to monitor financial markets "calmly and objectively" and make appropriate adjustments.

"We are supporting our clients with frequent, regular market analysis and updates to help them fulfil their financial objectives.

"Our MPS flows continued to grow strongly in the quarter, with 13% annualised growth year-to-date, and total net outflows improved by 15% to £129m.

"Our recent move to the main market of the London Stock Exchange marks the start of a new chapter for Brooks Macdonald, as we pursue our strategy to deliver sustainable value for all our stakeholders."

At 0819 BST, shares in Brooks Macdonald Group were up 2.12% at 1,445p.

Reporting by Josh White for Sharecast.com.