Brooks Macdonald FUM drops by £1bn despite fifth consecutive quarter of inflows

Brooks Macdonald has reported its fifth consecutive quarter of positive net flows, but market volatility has brought its funds under management (FUM) down by £1bn. 

The group saw inflows of £300m in the quarter, for an annualised rate of 6.7%. Global market declines offset this, causing the firm's closing FUM to fall 5.9% to £15.7bn, down from £16.7bn in the previous quarter. 

UKIM discretionary generated net inflows of £300m during the quarter, or 10.8% annualised net flows, while platform MPS and BMIS saw combined annualised net flows of 45.6%. However, the firm's funds and international arms suffered outflows of £106m and £25m respectively. 

Brooks Macdonald FUM declines in third quarter

Investment performance for the quarter resulted in a £1.3bn or 7.6% decrease in FUM, in line with the MSCI PIMFA Private Investor Balanced index. 

Brooks Macdonald delivered positive inflows of £800m or 4.8% during the financial year ending in June, which is an increase of £1.1bn from the net flows seen in FY21. The market downturn once again offset this, with the group's FUM closing 4.8% lower than at the start of the financial year.

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"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," said CEO Andrew Shepherd (pictured).

The firm said it anticipates its full year results, due to be released on 15 September, to be in line with market expectations.