Brooks Macdonald trades 'solidly' in first half

12th Jan 2023 12:09

(Sharecast News) - Brooks Macdonald said in an update on Thursday that its funds under management were up 4.5% in the December quarter, with net inflows of £0.2bn for an annualised rate of 4.0%.

The AIM-traded firm said that performance reflected "continued momentum" in new business, and positive investment performance of £0.5bn, leading to closing funds under management of £16.2bn on 31 December, compared to £15.5bn at the end of September.

Within UK investment manager, Brooks Macdonald said Platform MPS, including BM Investment Solutions, continued to gain market share, recording "strong" net flows in the period for an annualised rate of 52.5%, with a "robust" pipeline.

UK BPS experienced net outflows in the quarter, meanwhile, which the board put down to continued economic uncertainty, making clients more cautious and thus taking longer to commit funds.

The group completed two acquisitions in the quarter, of Integrity Wealth Solutions and Adroit Financial Planning, which the directors said demonstrated the firm's ability to identify and integrate businesses that would build capability and broaden the offering.

Investment performance for the quarter was 3.5%, in line with the benchmark MSCI PIMFA Private Investor Balanced Index.

The group said it traded "solidly" in the first half, despite a "difficult" prevailing macroeconomic environment and market conditions.

Underlying profit and underlying profit margin, both year-to-date and full-year forecast, were running in line with current market expectations.

"I am pleased to report that we have delivered c.£350m of positive net flows so far this financial year, demonstrating the continuing demand from our clients and intermediaries for high quality investment management, despite the challenging macroeconomic environment and difficult market conditions," said chief executive officer Andrew Shepherd.

"It has been a solid half year for the group, with positive organic growth and two acquisitions completed in the period, underlining our continued progress towards our strategic ambitions.

"We remain in a strong position to take advantage of the great opportunities ahead for Brooks Macdonald."

At 1144 GMT, shares in Brooks Macdonald Group were up 3.83% at 2,170p.

Reporting by Josh White for Sharecast.com.