24th Oct 2019 09:25
(Alliance News) - Brooks Macdonald Group PLC on Thursday reported a rise in funds under management over the third quarter despite recording net outflows of GBP28 million.
At September 30, the wealth manager recorded funds under management of GBP13.29 billion, 1.1% higher than the GBP13.15 billion seen three months prior. Year-on-year, Brooks Macdonald's funds under management have risen 4.8%.
Brooks Macdonald ended the quarter with GBP10.01 billion in Discretionary funds, which includes its Managed Portfolio Service and Bespoke Portfolio Service, which is slightly higher than the three months prior.
Brooks Macdonald recorded total net outflows of GBP28 million over the period, as conditions "remained challenging".
"Although both Managed Portfolio Services and Funds continued to achieve net inflows during the quarter, Bespoke Portfolio Service recorded net outflows of GBP53 million, due to the weaker client sentiment in the market and in part to our focus on business quality. International saw reduced net outflows for the quarter, an initial reflection of the work under way to reinvigorate the business," Brooks Macdonald explained.
The wealth manager's Managed Portfolio and Fund strategies recorded GBP9 million and GBP23 million of net inflows, respectively.
Market performance added GBP166 million to funds. The wealth manager said this reflects its "prudent" defensive investment stance.
Chief Executive Caroline Connellan added: "The prevailing political and macroeconomic backdrop continues to generate market uncertainty and weaker client sentiment. Notwithstanding this, positive investment returns helped us deliver higher FuM levels and it was also encouraging to see early progress in our International business."
The company's International business saw funds rise 2.5% over the third quarter, ending the period at GBP1.64 billion.
She continued: "Although we remain cautious about the short-term outlook, the fundamental opportunity for Brooks Macdonald remains strong and we are well positioned to capture it. Given the investment we are making in our talent and capabilities, the focus we maintain on efficiency, and our ongoing cost discipline, our expectations for full year profit are unchanged."
Shares in Brooks Macdonald were trading down 2.9% at 2,030.00 pence each in London on Thursday.
By Paul McGowan; [email protected]
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