The international arm of Brooks Macdonald suffered a 0.4% fall in net new business with outflows of £7m ($9m, €8.1m) for the three months ending 30 September 2019, which the firm reports as Q1 for financial year 2020.
This comes after BMI saw a 9.6% drop in net new business during its full year 2019 results ending 30 June 2019.
The firm said that the “reduced net outflows for the quarter” was “an initial reflection of the work under way to reinvigorate the business”, something Brooks Macdonald discussed during an interview with International Adviser recently.
BMI reported a small 2.3% rise in funds under management (FuM) to £1.64bn from £1.60bn, the figure as at 30 June 2019.
Re-energise
Andrew Shepherd, chief executive of BMI, said: “The decisive action we have taken to re-energise our international business has built up positive momentum, and we have made significant progress from where we were a year ago.
“Wealth Management businesses are always at their best when clients are the absolute priority and we have put an enormous amount of energy into building strong relationships. It is testament to this approach that we are now seeing growth in new business from advisers, private clients and trustees as our local reputation builds.
“I’m confident that with the client at the heart of everything we do, we will continue to build an increasingly strong business.”
Group results
As at 30 September 2019, group FuM totalled £13.3bn, an increase of 1% over the prior quarter (30 June 2019: £13.1bn).
The group had total net outflows of £28m over the period.
Outflows have been a problem for the majority of firms across the financial services market, given ongoing political and economic uncertainty.
Encouraging international business
Caroline Connellan, chief executive of Brooks Macdonald, said: “The prevailing political and macroeconomic backdrop continues to generate market uncertainty and weaker client sentiment.
“Notwithstanding this, positive investment returns helped us deliver higher FuM levels and it was also encouraging to see early progress in our international business.
“Although we remain cautious about the short-term outlook, the fundamental opportunity for Brooks Macdonald remains strong and we are well positioned to capture it.
“Given the investment we are making in our talent and capabilities, the focus we maintain on efficiency, and our ongoing cost discipline, our expectations for full year profit are unchanged.”
