Brooks Macdonald’s net flows climbed 3.1 per cent over the past quarter but investment performance lagged, with funds achieving just half of the gains set by the benchmark index.
The wealth management firm saw funds under management grow from £16.8bn to £17.3bn over the three month period.
But total investment performance across the company's funds reached 1.9 per cent, half the MSCI Pimfa Private Investor Balanced Index of 3.8 per cent.
“Investment performance remained positive, although behind the benchmark index for the quarter,” the company said in its quarterly trading update today (January 13).
It added: “The group remains confident that client portfolios are well positioned for the medium and longer term.”
The group said it maintained a “relatively stable asset allocation” through the quarter, resulting in “lower than expected” transaction-related revenues for the first half which was offset by “continued strong cost discipline”.
Andrew Shepherd, Brooks Macdonald’s chief executive, highlighted the company's international business, which returned to positive net flows in the quarter, growing from £2.5bn to £2.6bn, after organic net new business fell by £14m the previous quarter.
“It is especially pleasing to see our international business return to positive net flows, with our new Isle of Man office also coming on stream to support future growth,” said Shepherd. The group operates 14 offices across the UK and crown dependencies.
Shepherd continued: “We have a growing pipeline of new business, our highly talented people are continuing to work hard to improve and develop our service to clients and intermediaries, and we are in a strong position to take advantage of the great opportunities ahead for Brooks Macdonald."
The group is going through a digital transformation, having launched a new digital client onboarding system last quarter.
The company said transition of all client and intermediary-facing processes to SS&C's platform was ongoing and would conclude “once comprehensive testing has been completed”.
ruby.hinchliffe@ft.com
