Wealth and funding supervisor Brooks Macdonald has right this moment reported internet outflows of £70m for the primary quarter of its monetary yr ended 30 September.
Group CEO Andrew Shepherd mentioned “troublesome” markets and excessive rates of interest had been affecting consumer behaviour inflicting “brief time period stress on flows.”
He mentioned in the course of the quarter shoppers elevated money holdings, paid off debt and invested in cash market funds to keep away from volatility.
The group noticed internet outflows of £70 million or 0.4% in the course of the quarter.
Gross inflows had been degree with the identical interval final yr, however outflows had been greater, pushed by internet outflows of 4.6% in Brooks’ UK Funds enterprise.
Brooks mentioned this was per traits seen throughout the asset administration sector.
Regardless of the outflows there was constructive funding efficiency within the quarter of 0.5% which helped improve the group’s closing Funds Below Administration barely by £0.1bn to £16.9bn (30 June 2023: £16.8 billion).
UK discretionary FUM elevated by 0.6% over the quarter, with constructive internet flows pushed by Brooks’ MPS Platform.
The corporate mentioned its pipeline for the total yr remained “strong” with persevering with robust gross inflows and constructive internet flows anticipated for the total yr.
Andrew Shepherd, CEO of Brooks Macdonald, mentioned: “I’m happy that inflows proceed to be strong, and that our core UKIM discretionary enterprise delivered constructive internet flows, reflecting persevering with demand for our services and products.
“On the total group degree we noticed internet outflows, pushed by the risky macroeconomic backdrop and persevering with excessive rates of interest, that are main shoppers to transfer in the direction of greater money holdings, debt compensation and funding in cash market funds.
“Our individuals proceed to have interaction intently with our shoppers and introducers to assist information them by means of these troublesome markets. In our view, the necessity for top of the range monetary recommendation and strong long-term funding administration is now larger than ever. Provided that, mixed with the supportive demographic traits and the standard and dedication of our individuals, we stay assured within the group’s means to ship our formidable progress technique.”
