The group did not elaborate with any update in the trading update and its quarterly announcement of funds under management (FUM) for the fourth quarter of its financial year ended 30 June 2024.

The international business saw negative organic gross inflows of (10.5)% in Q4 vs Q3, compared to a 6.7% uplift for gross outflows over the same period, in the analysis of FUM gross flows by service over the twelve months. Figures for other measures shown in tables below.

Overall FUM for the group was up 7.0% over FY24 to £18.0bn, “with full year results expected to be in line with market expectations”

Andrew Shepherd (pictured), CEO of Brooks Macdonald said:”I am pleased to report that FUM increased to £18.0 billion. We remained dedicated to serving our clients in a changing economic environment. This focus resulted in strong gross inflows, with high demand for wealth management services that provide solutions through the entire investor lifecycle.

“Outflows have remained elevated but with a more certain political backdrop, lower inflation and the increased likelihood of a reduction in interest rates, we anticipate that these will moderate. We will stay focused on meeting our clients’ investment needs.”

In June 2024, the Group announced the retirement of Andrew Shepherd as Group CEO and the appointment of Andrea Montague in this role from 1 October 2024, subject to regulatory approval.

The Group recorded net outflows in the quarter of £0.2bn, which was an improvement on the prior quarter, and was more than offset by positive investment performance, resulting in closing FUM of £18.0bn (31 March 2024: £17.9bn).

Group gross inflows in the fourth quarter were £623 million, the highest of any quarter in the financial year, reflecting strong client demand for our broad proposition set.

Platform MPS, including the Group’s B2B offering for financial advisers, BM Investment Solutions (BMIS), grew to £4.4bn (31 March 2024: £4.2bn) with annualised organic net new business in the quarter of 13.0% of opening FUM.

BPS experienced net outflows in the quarter of £0.2bn or 7.1% on an annualised basis (FY24 Q3: £0.2bn or 9.6%).

BPS gross inflows increased by 33.1% in the fourth quarter as clients added funds to our specialist products.

Investment performance for the quarter was relatively strong at 1.4%, ahead of the benchmark which increased by 1.1% in the period.

For the financial year ended 30 June 2024, the group said it experienced net outflows of £0.6bn or 3.7%, in line with guidance. Investment performance contributed £1.8bn, leading to overall growth in the Group’s closing FUM of 7.0% from the start of the financial year to £18.0bn (30 June 2023: £16.8bn).

Trading performance in the second half was solid, and the Group anticipates its full year results to be in line with market expectations.

Analysis of FUM net flows by service over the quarter

Analysis of FUM net flows by service over the twelve months

¹ MSCI PIMFA Private Investor Balanced Index, a capital-only index.

Analysis of FUM gross flows by service over the twelve months

In a statement on 20 June, Ogier said the achievement marked “a significant milestone, allowing the firm to extend its comprehensive range of services to include fund administration, corporate and domiciliation services from within the Grand Duchy of Luxembourg”.

With the newly acquired CSSF licence, Ogier Global is equipped to provide an expanded suite of fund administration solutions to its global clientele.

Wilfried Lottin, managing director of Ogier Global in Luxembourg said: “This new offering in Luxembourg leverages our existing expertise in corporate and fiduciary services and the management of diverse unregulated entities such as management companies, special purpose vehicles, and holding companies. This enhancement will ensure that we can service all our clients’ needs.”

David Fowler, Global Head of Fund Services, said: “Luxembourg is a key location for fund administration and with this licence, we are ideally positioned to offer our clients a full range of services that will support their funds throughout their lifecycle. The firm’s global presence and local expertise enable us to navigate intricate regulatory landscapes, offering clients peace of mind and the assurance of compliance with all regulatory requirements.”

Valere Twagirayezu, head of fund administration, Luxembourg: “We are excited about the opportunities this licence presents. Our clients now have the benefit of a seamless and integrated service provision, with a dynamic and client centric team that promises a superior client experience in the Luxembourg market.”

The global financial adviser group highlighted how deVere Asset Management (dVAM) used specialist fund managers, including Fulcrum, Columbia Threadneedle, Mercer, and Guinness.

These partnerships ensured that dVAM funds, all domiciled in Dublin, were “equipped to face changing markets and provide robust investment strategies that meet the evolving needs of investors”.

It also pointed to the way the dVAM Product Advisory Committee provided independent oversight of the funds, the investment manager, and the sub-investment managers.

James Green, deVere Group’s investment director, said: “It reflects our commitment to delivering innovative and effective investment solutions that perform well even in volatile market conditions.”

“Clients have the opportunity to engage directly with the fund managers, gaining insights into investment decisions and market perspectives.”

He added: “Our Product Advisory Committee plays a critical role in maintaining the integrity and performance of the dVAM funds,” James Green explains.

“Their independent oversight ensures that our funds are managed with diligence and innovation, aligning with our commitment to excellence and client satisfaction.”

James Green further said: “Being a product consultant allows us to integrate global insights with local expertise.

“It enables deVere Group to offer tailored investment solutions that address the specific needs and objectives of clients, providing them with the tools and strategies necessary to achieve long-term financial success.”

MPS managers Simon Doherty and Antony Webb have introduced a modest allocation to the Artemis US Smaller Companies fund within their US equity ‘Building Block’ – the MI Quilter Cheviot North American Equity Fund.

The decision to initiate a dedicated investment in US ‘small cap’ stocks this April comes after a prolonged, intentional ‘underweight’ allocation to this segment of the market.

A fall in interest rates later this year would result in an environment which tends to favour smaller, domestically focused businesses, as does a recovery in consumer confidence. Furthermore, Doherty and Webb believe recent government-led initiatives, such as the Inflation Reduction Act, are likely to benefit domestic companies at a time when valuations in these firms look particularly attractive versus the broader market.

Meanwhile, in its US exposure, Quilter Cheviot has also topped up its positions in Nvidia and Meta, while at the same time reducing holdings in Alphabet and food giant Mondelez.

Elsewhere across the strategies, infrastructure has been selectively added to as it is an asset class that the team expects to continue to provide a number of opportunities for long-term investors. Finally, within the Quilter Cheviot European Equity Fund, there were small adjustments, as existing bank and energy positions were added to, whilst consumer staples and real estate names were trimmed.

Quilter Cheviot said its MPS utilises a “unique” Building Blocks structure – a range of funds designed and actively managed by Quilter Cheviot for use within its MPS. Each Building Block fund is designed to provide specific geographic or asset class exposure, and invests in a combination of direct equities, bonds or external fund holdings.

Antony Webb (pictured), head of MPS Investment Funds at Quilter Cheviot, said: “While interest rate cut expectations have certainly come down since the start of the year, the market is still looking at one or two cuts for this year before falling further next. As such, we feel it is prudent to begin adding to companies that we believe will have quite a strong reaction when these rate cuts arrive.

“Despite a period of sustained relative weakness versus large-caps, US small-caps look particularly well primed, with the US economy holding up well and a backdrop of very accommodative federal spending, regardless of who is in charge.

“The Artemis US Smaller Companies fund we have added to our North American Building Block offers a clear, consistent and historically successful approach to ‘small cap’ investing that is complementary to our other, largely stock-specific ideas within the allocation.

“We also continue to see good value in selective alternatives, particularly listed infrastructure. These investment trusts have been at a wider than usual discount in the past 18 months and although they have narrowed recently, we continue to see an attractive long-term return profile from these holdings.”

Launched with initial funding from a diverse group of family offices in the US, the Fund is designed to mirror the strategy of the company’s existing India equity UCITS fund, the Chikara Indian Subcontinent Fund, which has grown in AUM to over USD $100m this year.

The new Chikara India Equity Fund is a Cayman-domiciled, monthly-dealing, long-only equity fund. The Fund has no performance fee, does not trade derivatives as part of its strategy and applies an annual management charge of between 50 and 100bps.

The portfolio will hold approximately 25-30 stocks, with the fund managers selecting high-growth and high-quality companies optimally positioned to benefit from India’s impressive domestic growth.

The Fund’s investment approach is high conviction, index-agnostic, with a concentrated focus on companies benefiting from India’s robust domestic prospects. The India growth story is well-documented, the demographic trends well known; India’s age dependency is significantly lower than the world average, and its GDP looks set to double to more than $7.5 trillion by 2030.

This will make India the third largest economy behind China and the US.

Abhinav Mehra, co-manager of the new Chikara India Equity Fund, and Chikara Indian Subcontinent Fund, said: “The top-down macroeconomics are, of course, compelling. As GDP per capita grows from approximately USD $2,500 towards USD $5,000, some companies in currently underpenetrated sectors such as insurance, mortgages and private healthcare should benefit disproportionately and grow faster than the 7% growth predicted for India itself as affordability improves and penetration rates rise.

“Within those domestic sectors, we select companies with stringent governance in place that we have known for many years and are confident entrusting client capital to. In our view, this is a once in a generation economic transition that we aim to capitalise on and believe will be fruitful to US investors, providing them access to this under-served and secular element of India’s growth story.”

James Tollemache, chief executive of Chikara Investments, said: “Many investors talk about being exposed to India domestic growth, but this portfolio is without question giving investors that pure play exposure. Most of the revenue in this portfolio is generated domestically rather than from export earnings, which really differentiates the Chikara India Equity Fund in the market.

“In launching this Fund, we have responded to clear interest and demand from US investors. They have plenty of exposure to global and US growth in their portfolios already, not least the magnificent seven, but this Fund tapping into India’s under-penetrated domestic-focussed high-growth story provides something different. Chikara India team’s proven strategy appears to be unlike any other fund in the region.”

Alongside the India equity strategies, Chikara Investments manages Japan equity funds through the Chikara Japan Income and Growth Fund, and the investment trust CC Japan Income and Growth, both managed by Richard Aston. The firm launched the long only Chikara Global Emerging Markets Opportunities Fund (a subfund of the existing Irish UCITS product) managed by Jonathan Asante and his team at the end of 2023.