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Stock Markets April 15, 2026 03:47 AM

BRK posts modest net inflows in Q3 trading update, driven by platform MPS strength

Net flows improve sequentially to £58m as BPS outflows persist and group AUM falls slightly

By Derek Hwang
BRK posts modest net inflows in Q3 trading update, driven by platform MPS strength

BRK reported third quarter 2026 net flows of £58 million, a sequential improvement from £50 million in Q2 and reflecting 1.3% annualised net flow growth. Results were below RBC's £90 million estimate. While high-margin BPS saw net outflows of £132 million and a 3% quarter-on-quarter decline in funds under management, platform MPS delivered £281 million of net inflows and 16% annualised growth. Group funds under management and administration ended the quarter at £19.9 billion, down 1% quarter-over-quarter with market movements imposing a 1.7% headwind. Management expects fiscal 2026 results to be in line with market expectations and maintains a 5% medium-term organic growth target.

Key Points

  • BRK reported Q3 net flows of £58 million, an annualised growth rate of 1.3%, up from £50 million in Q2 but below RBC's £90 million estimate.
  • BPS - the company's highest margin product - saw net outflows of £132 million and a 3% decline in funds under management quarter-over-quarter.
  • Platform MPS posted £281 million of net inflows, delivering 16% annualised growth and outperforming RBC's £190 million estimate; group funds under management and administration fell to £19.9 billion, down 1% quarter-over-quarter.

BRK's trading update for the third quarter of 2026, released on Wednesday, showed an improvement in net flows compared with the prior quarter but fell short of some analyst expectations.

The company recorded net flows of £58 million in the period, representing 1.3% annualised net flow growth. That figure improved from £50 million in the second quarter and also rose year-over-year, though it missed RBC's estimate of £90 million.

Product performance

BRK's highest margin offering, BPS, continued to experience net outflows, with £132 million exiting the product during the quarter. Management attributed the decline to lower gross inflows. The BPS outflow represents a deterioration compared with the £50 million outflow reported in the second quarter, but it is an improvement relative to the £211 million outflow recorded in the third quarter of 2025. BPS funds under management declined by 3% quarter-over-quarter.

By contrast, platform MPS was the standout within BRK's product suite. MPS attracted net inflows of £281 million, ahead of RBC's £190 million projection. The platform delivered 16% annualised growth in the quarter, up from £187 million of net flows in the second quarter. When compared to TAM's October-to-March measure, BRK's MPS flows translated to 14% annualised growth.

Balance sheet and asset metrics

Group funds under management and administration closed the quarter at £19.9 billion, a 1% decline from the prior quarter. Market movements produced a 1.7% headwind to the overall figure. Total advised-only assets rose to £2.4 billion, up 2% quarter-over-quarter, while the aggregate level of advised assets remained flat.

The share of assets that are both advised and managed by BRK edged down to 56% of total assets under administration, from 57% in the second quarter.

Outlook

Management said fiscal year 2026 results are expected to be in line with market expectations. The company reiterated its medium-term organic growth target of 5%.

Overall, the update highlights a mixed quarter for BRK: platform MPS provided meaningful net inflow momentum, while BPS continued to experience outflows and group AUM was modestly reduced by market movements.

Risks

  • Persisting outflows from BPS could pressure fee margins and revenue from higher-margin products - impacts sector: asset management and financial services.
  • Market-driven declines in assets under administration, illustrated by a 1.7% headwind, may reduce AUM-related revenue if market volatility continues - impacts sector: asset management and broader investment markets.
  • Net flow performance falling short of analyst expectations (RBC's £90m estimate) introduces execution risk around meeting investor growth targets and consensus forecasts - impacts sector: investment research and equity markets.

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