Asset management firm Brooks Macdonald is planning to leave AIM for the London Stock Exchange’s main market in a bid to boost its profile and stimulate growth. In a recent trading update, the company stated that the move would enhance its "corporate profile," and provide an "opportunity to own its ordinary shares to a broader group of investors".
The transition, which doesn't require shareholder approval, is slated for March. Despite net inflows being slightly weaker than analysts' predictions, Brooks Macdonald reported that the past quarter had seen the strongest gross inflows in the last 18 months, as reported by .
Gross inflows for the three months ending 31 December totalled £579m, while gross outflows were £730m. Net outflows amounted to £151m, with investment performance contributing an additional £200m.
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Funds under management concluded the period at £17.9bn. City AM disclosed today that Brooks Macdonald has made several senior staff redundancies in recent months, including its global head of distribution, global head of marketing, and head of public relations.
"It seemed to me that they were keeping it below the 10 per cent threshold, and doing it over a staggered period of time, so they didn’t have to enter into a consultation," commented one former employee.
Brooks Macdonald has today signalled that its recent string of acquisitions, including the purchase of financial planning firm Lucas Fettes and independent financial advisor LIFT, are advancing positively. Additionally, the company's sale of its international business is reportedly progressing as planned.
"We continue to believe that these transactions will help accelerate the execution of the group’s strategy and leave it better placed to take advantage of the structural growth areas in the 海角视频 Wealth space," commented Investec analysts Rahim Karim and Jens Ehrenberg. Despite assets under management falling short of expectations, Investec analysts have maintained their earnings per share forecast for Brooks Macdonald, citing lower anticipated costs.
"While outflows remained elevated in the quarter, we are taking actions to improve asset retention as well as driving new business growth," stated Brooks Macdonald CEO Andrea Montague. She also highlighted the firm's robust quarter: "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."