CST Wealth Management’s assets under advice (AuA) are c. £170m and have a high-quality base of c.500 clients. In addition to financial planning for individuals, CST offers financial planning for businesses.

The acquisition adds to Brooks Macdonald’s growing offering in Wales, with the CST team well known to the firm.

CST represents a strategic and cultural fit, Brooks Macdonald said, aligned with the group’s strategy to expand client reach and accelerate growth in financial planning. It follows the recent acquisitions of LIFT-Financial and Lucas Fettes Financial Planning.

Andrea Montague, chief executive of Brooks Macdonald, said: “CST Wealth Management is well known to our Cardiff team for their excellent client service. We are delighted to welcome them to Brooks Macdonald as we increase our offering in Wales and grow our presence in financial planning, aligned with our strategy to reignite growth.”

Gwyn Williams, director of CST Wealth Management, said: “We are pleased to be joining Brooks Macdonald, which has a great reputation and shares many of the values that have driven our success to date. We look forward to becoming part of the BM team and to the benefits it will bring to our clients.”

Lucas Fettes has c.£890m assets under advice (AUA) in total, spread across 1,600 personal clients, plus c.£300m “Assets under Influence” from more than 300 corporate and employee benefits clients. The business has seen significant growth in AUA in the last five years.

The financial planner business will be integrated into Brooks Macdonald’s Direct Wealth business bringing “a strong presence in a geographical area where there is opportunity to grow”, the statement said today (17 September).

In 1996, Lucas Fettes was one of the very first IFAs to outsource part of their investment management to Brooks Macdonald and the relationship has continued ever since, with Lucas Fettes one of the Group’s Top 10 introducers.

Andrea Montague (pictured), CEO designate & chief financial officer of Brooks Macdonald, said: “We are delighted to announce the acquisition of Lucas Fettes. Today’s announcement aligns with our redefined strategy to reignite growth, as it will broaden and deepen our client reach. This acquisition will strengthen our financial planning capability and enhance our presence in East Anglia.

“Brooks Macdonald has had a consistently strong business relationship with Lucas Fettes since 1996, built on a great cultural fit, as well as our delivery of strong investment returns and commitment to excellent client service. I am pleased to now welcome them into the Group”.

Mark Brown, managing director of Lucas Fettes, said: “We have worked with Brooks Macdonald now for over quarter of a century and are very pleased to be joining the Group. Having carefully considered our future we believe now is the time to become part of a larger organisation with shared values and ambition.

“We are confident in our shared focus on quality and personal service, along with a determination to deliver market leading client outcomes.”

Mullins (pictured) joins Brooks Macdonald following more than a decade with Rathbones where he was head of sales, responsible for the Rathbones distribution team. Prior to this, he was head of IFA sales with M&G Investments. He has over 35 years of experience in financial services.

Mullins will report to Robin Eggar, chief commercial officer.

Brooks Macdonald said the appointment of Greg Mullins will bring greater focus to serving the needs of IFAs and their clients, drawing on the range of wealth management propositions of Brooks Macdonald.

Eggar said: “Greg brings a wealth of experience and a deep understanding of the financial advisory landscape. His strategic vision and commitment to fostering strong relationships align perfectly with our ambitions to provide a market-leading experience to the advisers we work with. Greg’s expertise will be instrumental in enhancing our service offerings and driving continued growth for the group.”

Mullins added: “I am delighted to be joining Brooks Macdonald, a company I have long admired and respected. I am looking forward to collaborating with my new colleagues to offer advisers the unique benefits and culture that have established Brooks Macdonald as a leader in our sector.”

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

He has been instrumental in driving the success of BMIS, set up in 2020, which supports 29 partner firms and more than £1.4bn in assets under management.

Rockey will be working alongside the group’s investment managers and chief investment office, leading the in-house specialist consulting team that helps adviser build a centralised investment proposition.

Robin Eggar, chief commercial officer at Brooks Macdonald, said: “We are delighted to appoint Andrew to Head of Investment Solutions. His unrivalled knowledge of the IFA market and extensive investment expertise will be crucial in driving forward this strategically important part of our business.

“This appointment strategically positions us for continued success and growth in the adviser market – a crucial driver of growth for the firm.”