Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks IPOs and placings
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
Macro uncertainties lead to net outflows for Brooks Macdonald
(Sharecast News) - Brooks Macdonald said in an update on Wednesday that it saw robust gross inflows of £0.6bn in the December quarter, marking a 1.5% increase from the prior quarter and equating to an annualised rate of 14%.
The AIM-traded firm said gross outflows were notably high, however, reaching £0.7bn for the three month period, with particular emphasis on the BPS and Funds sectors.
It put the elevated outflows down to the prevailing market volatility and the impact of higher interest rates on client behaviour.
As a result, the quarter ended with overall net outflows of £0.1bn, or 0.6% of total funds.
The company said the net outflows were partially offset by positive investment performance, which achieved a 4.9% increase during the quarter.
That performance led to a 4.3% growth in the group's closing funds under management (FUM), bringing it to a total of £17.6bn as of 31 December, compared to £16.9bn on 30 September.
Brooks Macdonald's funds under management or advice (FUMA) with private clients directly dealing with the group amounted to £5.2bn as of the end of December.
Out of that total, £4.4bn was related to portfolios within the group's investment management, while £0.8bn was attributed to portfolios managed by third-party investment managers.
Looking ahead, Brooks Macdonald expected continued momentum in gross inflows across its product range during the second half of the year.
The level of gross outflows and the resulting net flows for the full year would depend in part on macroeconomic factors, the board explained.
Following the organisational changes made in October, the group said it expected its full-year underlying profit and underlying profit margin to align with market expectations.
"I am pleased to report growth of 4.3% in the group's funds under management for the first half of the financial year," said chief executive officer Andrew Shepherd.
"This result is a testament to the expertise and hard work of our people who are committed to delivering on our purpose to 'realise ambitions and secure futures' for all our stakeholders.
"During a challenging period for both the economy and financial markets, we continued to see healthy demand across our range of products and services, with £0.6bn of gross inflows during the second quarter."
Shepherd said that included 44.7% organic growth from the firm's recently launched and fast-growing gilt portfolio service.
"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.
"Given those capabilities and the opportunities we can see ahead, I remain confident in our ability to deliver on the group's ambitious growth strategy."
At 1300 GMT, shares in Brooks Macdonald Group were down 4.75% at 1,805p.
Reporting by Josh White for Sharecast.com.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity and Inclusion | Doing Business with Fidelity | Fidelity gender pay report | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Security | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.