Brooks Macdonald experienced a significant investment and market loss over the previous quarter as it continued to consolidate its recent financial acquisitions.
Despite funds under management and administration at the asset manager increasing by seven per cent over the quarter, this was primarily due to the addition of £1.6bn through the acquisitions of financial planning firm Lucas Fettes and independent financial advisor LIFT, as reported by .
However, Brooks Macdonald reported £129m of investor withdrawals throughout the quarter. Although this was an improvement from the £151m withdrawn in the last three months of 2024, it still represented a significant loss, as revealed in a trading update.
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Furthermore, poor market and investment performance resulted in losses across all sectors of the firm's business, with assets decreasing by £273m over the quarter.
Due to these disappointing investment returns, Investec analysts have downgraded their forecasts for the firm's pre-tax profit over the next two years by 12 per cent. However, they also acknowledged the potential for improved estimates if markets recover.
At the beginning of 2025, City AM disclosed that Brooks Macdonald had made several layoffs among its senior staff in recent months, including its global head of distribution, global head of marketing, and head of public relations.
The company has previously implemented numerous cost-cutting programmes, and new CEO Andrea Montague, who joined in October, did not dismiss the possibility of further redundancies.
"The integration of our Financial Planning businesses is progressing well, and we remain focused on improving asset retention and driving new business growth," Montague stated in the trading update.
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"Our recent move to the main market of the London Stock Exchange marks the start of a new chapter for Brooks Macdonald, as we pursue our strategy to deliver sustainable value for all our stakeholders," she further commented.
Following its transition from the AIM to the main market of the London Stock Exchange at the end of last month, Brooks Macdonald has seen its stock price decline by seven percent.
However, today's trading update highlighted some positive developments for Brooks Macdonald: The firm's managed portfolio service platform was the only division to attract new funds during the quarter.
This segment, which encompasses Brooks Macdonald Investment Solutions catering to financial advisers, along with its recently acquired entities, successfully garnered £148m in fresh capital over the quarter.