(Alliance News) - Brooks Macdonald Group PLC on Wednesday said its funds under management increased during the third quarter of its financial 2024
The London-based wealth manager said funds under management at March 31 rose 2.0% to GBP17.93 billion from GBP17.58 billion on December 31.
During the third quarter, organic net new business fell by GBP294 million or 1.7%, but this was more than offset by investment performance rising by GBP642 million or 3.7%.
Brooks Macdonald said gross inflows were "robust" at GBP500 million, while gross outflows continued to be elevated at GBP800 million on the high interest rates and inflation background around the world. This led to overall net outflows of GBP300 million.
"Markets responded to the improving macroeconomic outlook. We have also seen encouraging flows in our Platform MPS and specialist BPS propositions demonstrating continued demand for our broad product range," said Chief Executive Officer Andrew Shepherd.
"However, interest rates are still high, placing continuing pressure on our clients, and we remain focused on meeting their needs through our innovative solutions and excellent client service."
Looking ahead, Brooks Macdonald said outlook for financial 2024 underlying profit remains in line with market expectations. In the second half, it expects to continue to realise cost benefits of the organisational changes announced in October last year, while "retaining a focus on operational excellence".
"Demand for our products and services remains positive, particularly in our specialised BPS products and Platform MPS, which is reflected in our gross inflows. However, given the persistence of current trends in the market and client behaviour, in line with previous guidance, the group expects net outflows for the full year," the company said.
"The strategic review of the group's International operations is progressing and we will communicate the outcome later this year."
Shares in Brooks Macdonald were up 0.3% to 1,833.00 pence each in London on Wednesday morning.
By Greg Rosenvinge, Alliance News senior reporter
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Brooks Macdonald (BRK)