Brooks Macdonald has reported ‘positive’ net flows for its investment management business in the UK for the financial third quarter ended 31 March 2021.
The British wealth manager posted net inflows of 0.3% across its UK business in what it called ‘best quarter of the financial year to date.’
The rise was driven by positive net flows in UK Investment Management (UKIM), particularly in the Managed Portfolio Service (MPS).
The managed portfolio service recorded a 7.1% gain.
During the quarter, Brooks’ total FUM increased 0.9% ending the period at £15.6bn from £15.5bn as at end of December.
Funds saw net flows of 3.4%, significantly boosted by the Defensive Capital Fund, although outflows were lower compared to the previous two quarters.
Brooks’ investment performance in the third quarter of its financial year was 1.1%, lower than the 1.6% benchmark posted by the MSCI PIMFA Private Investor Index.
However, investment performance for the financial year to date was 10.8%, compared to the benchmark index, which was up 8.2%.
Brooks also noted that the integration of the Lloyds Channel Islands acquisition continues to make progress while medium-term prospects continue to be positive.
The company expects total net flows to be modestly positive in H2.
Brooks Macdonald CEO Caroline Connellan said: “It has been another quarter of delivery against our strategy evidenced by good performance in our core UKIM business, the continued positive trend in overall net flows, and a healthy pipeline.
“This momentum is testament to our people and I am once again grateful to them for their relentless commitment to delivering for intermediaries and clients in challenging circumstances.”
“We remain on track to achieve full year expectations and we are well positioned to continue delivering sustainable, value-enhancing growth,” Connellan added.
In February this year, Brooks Macdonald appointed Ewan Millar as the new head of alternative investment markets (AIM).