Brooks Macdonald has seen £800mn in net inflows in the year to June 30, however market conditions have led to a decrease in funds under management.
In its fourth quarter results announced on the stock exchange today (July 14), the group said market downturn led to an overall decrease of 4.8 per cent in the group’s assets under management.
In the quarter, net inflows were £300mn, the majority of which went into the group’s UKIM discretionary funds.
This marks the fifth consecutive quarter of inflows for the investment manager.
Chief executive of Brooks Macdonald, Andrew Shepherd, said the results demonstrated “sustained momentum”.
“Against the backdrop of declining markets, it is more important than ever to stay connected with our clients and intermediaries, and I am proud of how our people have made a difference for them and helped deliver such strong results.”
Analysts at Equity Development said it was impressive that the investment manager saw net inflows in Q3 and Q4, during periods of sharp market falls which normally coincide with net outflows for investment managers.
In a note this morning, the research house said “With such a strong franchise, evidenced by consistent net inflows in turbulent markets, we think the medium to long term prospects of Brooks Macdonald remain very strong.”
Peel Hunt agreed, saying there is good potential upside for the firm, but warned against market conditions.
“Brooks Macdonald has made good progress this year, demonstrated by the improving trend in flows; however, there is little the business can do against lower asset values and investor sentiment is likely to be fragile for some time.”
Earlier this year the group acquired Warwickshire-based IFA Integrity Wealth.
The deal, which would see the IFA’s subsidiary Integrity Wealth Solutions also join, added £250mn funds under management and 800 clients to Brooks Macdonald.
sally.hickey@ft.com
