The weaker markets at the start of the year caused nearly a 1 per cent drop in funds under management for Brooks MacDonald, according to a trading update.
A quarterly update, published today, shows the AIM-listed firm saw discretionary funds under management drop to £11.6bn as of 31 March, a slight decrease of 0.7 per cent compared to the last quarter of 2017.
However, year-on-year funds under management grew by 18.2 per cent to £9.93bn, the firm says.
Net new business was £343m for the period but it was offset by a £422m loss from investment performance. Organic growth at the firm was 2.9 per cent.
Brooks Macdonald chief executive Caroline Connellan, who took over from Chris Macdonald in October 2016, says the business managed to maintain “good momentum” in the first quarter of the year despite the challenging markets.
She says: “The strength of our client and adviser relationships has continued to deliver robust organic growth with client sentiment remaining broadly positive.
“Weaker markets have resulted in total FUM declining slightly over the quarter. However, our investment performance has continued to be strong, demonstrating the value of good active management in difficult markets.”
This week, rival wealth manager St James’s Place also said funds under management dropped in the first quarter to £89.9bn, down from £90.8bn in the previous quarter.