Brooks Macdonald maintains FUM, plans transition to Main Market
By Josh White
Date: Wednesday 15 Jan 2025
(Sharecast News) - Brooks Macdonald Group said in an update on Wednesday that it maintained total funds under management of £17.9bn as of 31 December, unchanged from the prior quarter, as it also announced its intention to transition to the Main Market.
The AIM-traded firm said that excluding Brooks Macdonald International (BMI), funds under management grew modestly to £15.7bn, compared to £15.6bn at the end of September.
During the quarter, robust gross inflows of £579m were offset by gross outflows of £730m, resulting in net outflows of £151m, equivalent to 1% of opening funds under management.
Notably, the Managed Portfolio Service (MPS) platform business achieved net inflows of £146m, reflecting annualised organic growth of 13% in the quarter.
Investment performance added £200m to funds under management despite mixed market conditions.
The group said it remained confident in its performance outlook, with expectations to return to positive net flows later in the year.
In a strategic development, Brooks Macdonald announced its intention to transition from AIM to the London Stock Exchange's Main Market.
The board said the move was designed to enhance the group's corporate profile and broaden its investor base.
It said admission, expected between 4 and 31 March, would be achieved through the introduction of existing ordinary shares without issuing new shares or raising additional funds.
On admission, trading on AIM would be cancelled.
"This is Brooks Macdonald's strongest quarter of gross inflows for 18 months, driven by the quality of our service, the scope of products tailored to meet clients' needs, and our strong investment performance," said chief executive officer Andrea Montague.
"While outflows remained elevated in the quarter, we are taking actions to improve asset retention as well as driving new business growth.
"Additionally, we continue to scale and enhance our financial planning expertise, including most recently through the acquisitions of LIFT, Lucas Fettes and CST Wealth Management."
Montague said the company remained focussed on the execution of its strategy to "reignite" growth, serving clients well, reach more clients, and deliver value for clients, shareholders and employees.
"I am pleased to announce the board's intention to transition Brooks Macdonald from AIM to the Main Market.
"This move will further enhance the group's corporate profile and extend the opportunity to own its ordinary shares to a broader group of investors."
At 1204 GMT, shares in Brooks Macdonald Group were up 6.14% at 1,539p.
Reporting by Josh White for Sharecast.com.
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