Net outflows have slowed for Financial Planner and wealth manager Brooks Macdonald with the firm reporting net outflows of £0.1bn for its first quarter ended 30 September.

The net outflows represent 0.7% of funds under management.

Brooks said that uncertainty around the Budget led to a reduction in gross inflows for the firm in the quarter, with gross inflows dropping 6% quarter-on-quarter.

The firm had reported net outflows of £0.6bn for the financial year ended 30 June.

Gross outflows fell 5.1% quarter-on-quarter, the second quarter they have fell in a row.

Despite the overall drop in flows, the firm’s MPS platform (including the offering for financial advisers, BM Investment Solutions) grew to £4.6bn (30 June 2024: £4.4bn) with annualised organic net new business in the quarter of 13.0% of opening funds under management.

Overall, net outflows were offset by positive investment performance in quarter, with funds under management increase to £17.9bn (30 June 2024: £17.8bn).

Brooks recently saw former CEO Andrew Shepherd step down and retire, handing over the new CEO Andrea Montague from 1 October.

Ms Montague said that the upcoming Budget has already had an impact on Brooks’ business.

She said: “The considerable speculation around the upcoming Budget and rumoured changes to taxation and reliefs has clearly had an impact on investor confidence with lower gross inflows in the quarter.”

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.”

Earlier this month the Financial Planner announced it is to acquire LIFT Financial Group Ltd and LIFT Invest for £45m. The acquisition is subject to regulatory approval and is expected to complete by the end of March 2025.

The company said the deal “aligns with the group's strategy by expanding its client reach and accelerating growth in Financial Planning.”