Funds under management at Brooks Macdonald fell to £15.5bn ($17.1bn, €17.6bn) in the three months ending 30 September, down more than 10% from the £17.3bn reported at the end of 2021.
FUM stood at £15.7bn as of 30 June, the end of the firm’s financial year.
Inflows of £200m during its fiscal first quarter, an increase of 4.9% from a year ago, did little to offset the negative market movements which ultimately took FUM back to March 2021 levels.
Overall investment performance for the quarter saw a 2.1% decline, a £300m drop on the last quarter.
Chief executive Andrew Shepherd said that given the economic backdrop, “high quality financial advice and robust long-term investment management are needed now more than ever”.
“Our net flows for this quarter are a credit to everyone at Brooks Macdonald, who engaged actively with our clients and intermediaries to support them in navigating these volatile markets. We remain confident in our expectations for new business flows and in the group’s ability to deliver our ambitious growth strategy,” he added.
The investment manager’s discretionary arm attracted £234m in net new business, but this was offset by investment performance for the period, which dragged FUM down £274m.
The firm said that while the pipeline for the financial year remains “robust”, some clients are taking longer to commit funds due to the climate for the financial year ahead.
On the international front, FUM dropped by £57m (2.6%) in the quarter to 30 September 2022, made up by drops of £48m in investment performance and £9m in organic new business.
This article first appeared on our sister publication Portfolio Adviser.
