Brooks Macdonald pleased with resilience in tough market

Investment management company Brooks Macdonald Group updated the market on its discretionary funds under management for the first quarter ended 30 September on Thursday, reporting that at period end it totalled £13.3bn, which was an increase of 1% over the prior quarter.

The AIM-traded firm said it had total net outflows of £28m over the period, as conditions remained “challenging”.

It said that, although both managed portfolio services and funds continued to achieve net inflows during the quarter, while its bespoke portfolio service recorded net outflows of £53m due to the weaker client sentiment in the market, and in part to its focus on business quality.

The company’s international operations saw reduced net outflows for the quarter, which the board said was an initial reflection of the work underway to “reinvigorate” the business.

During the period, investment performance was £166m or 1.3%, compared to 2.0% for the MSCI WMA Private Investor Balanced Index, which Brooks Macdonald said reflected its “prudent defensive investment stance” in current markets, while long-term investment performance remained “robust”.

On a year-on-year basis, as at 30 September, funds under management increased 4.8%.

“The prevailing political and macroeconomic backdrop continues to generate market uncertainty and weaker client sentiment,” said chief executive officer Caroline Connellan.

“Notwithstanding this, positive investment returns helped us deliver higher funds under management levels and it was also encouraging to see early progress in our International business.”

Although the company remained cautious about the short-term outlook, Connellan said the fundamental opportunity for Brooks Macdonald remained “strong”, and the company was “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.”

As at 1119 BST, shares in Brooks Macdonald were down 5.98% at 1,965p.