UK wealth management group Brooks Macdonald has reported a fourth consecutive quarter of positive net client inflows, extending its recovery following a restructuring programme intended to rebuild growth and strengthen relationships with financial advisers.
The company recorded net inflows of £54m during the three months ended 30 September 2026, compared with net outflows of £49m in the corresponding period last year.
Total funds under management and advice increased to £21.8bn from £21.7bn at the end of June.
Of this total, funds directly managed by the business reached £19.5bn, up from £19.3bn three months earlier.
The quarterly improvement follows the group’s return to positive annual net flows during its 2026 financial year, after a period of restructuring and changes to its operating model.
The strongest contribution came from the platform-based managed portfolio service, which generated net inflows of £172m during the quarter.
That performance was broadly consistent with the £175m recorded in the corresponding period last year, reflecting continued demand for portfolio services distributed through financial advisers.
However, Brooks Macdonald’s bespoke portfolio service recorded net outflows of £53m.
Although still negative, the figure represented an improvement of approximately two-thirds compared with the £157m withdrawn during the same quarter a year earlier.
The results therefore indicate improving overall client activity, although the recovery remains uneven across different investment services.
Chief executive Andrea Montague attributed the progress to stronger relationships with advisers, continued development of financial planning, and the company’s efforts to improve its regional presence.
Brooks Macdonald has invested in recruiting investment managers and financial planners, while modernising its managed portfolio services to simplify access for clients and advisers.
The company has also been developing closer connections between investment management and financial planning through its Brooks Financial business.
At the end of September, Brooks Financial reported approximately £5.7bn in assets under advice. Of this amount, 59% was both advised and managed by the group, compared with 58% at the end of June.
The figures reflect the company’s ambition to provide more integrated services across investment management, retirement planning, and financial advice.
Recovery follows restructuring and investment
The latest quarterly update follows a financial year in which Brooks Macdonald reported net inflows of £226m, compared with net outflows of £396m in the preceding year.
Total funds under management and advice increased by 14% to £21.7bn during that period, while revenue rose 6% to £118.1m.
The business completed a two-year programme of transformation, investment, and organisational restructuring intended to improve efficiency and support future growth.
Its full-year results showed underlying profit before tax of £29m, with an underlying operating profit margin of 24.6%.
Statutory profit before tax was considerably lower at £3.2m, reflecting restructuring, acquisition and integration-related expenditure, and other adjustments.
The distinction between statutory and underlying profitability illustrates the costs associated with changing the operating structure of an established financial services business.
Brooks Macdonald has been pursuing its Reignite Growth strategy, which combines stronger distribution relationships, investment in financial planning, and further development of its portfolio services.
The company’s progress can be assessed partly through net client flows, which measure money entering or leaving its investment services.
Changes in total funds under management also reflect financial market performance, meaning an increase in reported assets does not necessarily indicate that clients have invested equivalent amounts of new money.
The latest net inflow figures therefore provide a more direct measure of improving customer activity, although they also reveal the continuing difference between platform and bespoke services.
Demand for wealth management is influenced by investment performance, economic confidence, competition, and changing requirements for retirement and financial planning.
Advisers are also assessing how service providers can support client reporting, administration, and the delivery of investment portfolios through digital systems.
Brooks Macdonald’s medium-term objectives include annualised net flows of 5% and underlying business-as-usual cost growth below 5%.
Achieving these targets will require continued improvement in client retention, new business development, and cost management.
The fourth consecutive quarter of positive net inflows demonstrates progress against the company’s recovery strategy, while remaining withdrawals from bespoke portfolios show that the improvement has yet to extend evenly across the business.
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