The last three months of 2019 were full of uncertainty for UK investors, culminating in a UK general election which resulted in a landslide victory for the Conservative party. Markets welcomed this outcome, but uncertainties remain.
Here, Investment Week takes a look at how the last months of the year affected the UK investment management businesses and what their outlook for the coming year is.
First to report its results to the end of December 2019 is Brooks Macdonald, which saw its assets under management (AUM) fall by 1.5% over the quarter, ending the year with £13.1bn as the business suffered total outflows of £478m.
The quarter saw the group's investment management agreement with Grosvenor Wealth Management terminated, worth £244m and amounting to annualised revenues of around £0.6m.
Overall, the UK Investment Management (UKIM) arm suffered the majority of the outflows, shedding £472m during the quarter. However, AUM for the UKIM discretionary segment, comprising the BPS and MPS services, still grew by 1.3% as a result of strong investment performance.
The international arm also saw growth in funds under management (FUM) of 1.8%, though net new business amounted to outflows of £6m.
CEO Caroline Connellan said: "While the recent UK election has removed some uncertainty, the broader macroeconomic and political backdrop makes it prudent to remain somewhat cautious about the short-term outlook for flows.
"We remain optimistic about the opportunities for Brooks Macdonald and, given our continued investment in talent, focus on delivering for clients and advisers, and ongoing cost discipline, our expectations for full year profit remain unchanged."