By Elena Vardon
Brooks Macdonald Group, a leading U.K. asset manager, has reported net outflows for the first quarter of 2024. The company attributed this to the impact of high interest rates and market volatility on client behavior. Despite these challenges, Brooks Macdonald expects to report positive flows for the full year.
During the three months ending September 30, the company recorded net outflows of £70 million ($86.2 million), representing a marginal drop of 0.4%. The majority of these outflows were observed in its U.K. funds business.
It's worth noting that last month, Brooks Macdonald had cautioned about the likelihood of short-term headwinds leading to outflows in this quarter.
In spite of the net outflows, the company's funds under management experienced a slight increase to £16.86 billion, up from £16.85 billion as of June 30. This growth can be attributed to positive investment performance totaling £79 million, which offset the net outflows.
Brooks Macdonald remains optimistic about the future. The company stated, "The pipeline for FY24 remains robust with continuing strong gross inflows, and positive net flows expected for the full year."