Fund under management rose 7% year-on-year to £18bn for Financial Planner and wealth manager Brooks Macdonald for its financial year ended 30 June

The firm saw net outflows of £0.6bn (3.7%) but said this was in line with expectations for the year.

Brooks recorded investment growth of 10.7% for the year, behind the MSCI PIMFA Private Investor Balanced Index benchmark which increased by 11.4%. The firm’s funds business had a particularly hard year with investment losses of 9.5%.

Andrew Shepherd, CEO of Brooks Macdonald, said the firm expects outflows to decrease soon.

He said: “We remained dedicated to serving our clients in a changing economic environment. This focus resulted in strong gross inflows, with high demand for wealth management services that provide solutions through the entire investor lifecycle.

“Outflows have remained elevated but with a more certain political backdrop, lower inflation and the increased likelihood of a reduction in interest rates, we anticipate that these will moderate.” 

For the fourth quarter the Financial Planner recorded £0.2bn in outflows but said this was more than offset by strong investment performance.

Group gross inflows for the quarter were £623m, which the Financial Planner said reflected strong client demand.

Platform MPS, including the firm's offering for financial advisers (BM Investment Solutions), grew to £4.4bn AUM (31 March 2024: £4.2bn) with annualised organic net new business in the quarter of 13.0% of opening funds under management.

Investment performance for the quarter was 1.4%, ahead of the MSCI PIMFA Private Investor Balanced Index benchmark which increased by 1.1% over the quarter.

Brooks Macdonald will report its full year results and the outcome of its strategic review of its international business on 12 September.

Recently CEO Andrew Shepherd announced he would retire after 22 years with Brooks Macdonald in October. He is to be replaced by current chief financial officer Andrea Montague who joined in firm in August 2023.

Last Autumn Brooks Macdonald announced that it would reduce its headcount to cut costs annually by £4m. The firm axed around 55 jobs, about 10% of its workforce, as part of the cost-saving measures.

Brooks Macdonald said the cuts from its 512-strong workforce were designed to ensure it is, “set up for success, organised to deliver its strategy and drive growth.”