Brooks Macdonald Group saw a 5.5 per cent rise in discretionary funds for the half year - across its asset management, funds and international businesses - against a backdrop of the Wealth Management Association balanced index dropping 0.75 per cent over the six months.
As at 31 December 2015, discretionary funds under management totalled £7.82bn, an increase of 6.71 per cent from the £7.33bn recorded at the end of September.
As a comparison, the WMA balanced index rose by 3.22 per cent over the quarter.
The group’s property management business Braemar Estates had property assets under administration of £1.12bn, up 1.29 per cent on the £1.07bn, as at 30 September.
In terms of third party assets under administration, Brooks Macdonald now has in excess of £270m, up from £260m in the autumn.
The half-year trading update stated portfolios held up well in a period of significant volatility and the group continues to pursue its core growth objectives of organic growth and infrastructure development.
Within discretionary funds under management, new business was ahead of management expectations, however profits were affected by the faster than expected pace of conversion from advisory to discretionary in Brooks Macdonald International.
“This is positive for the future although negatively impacted trading income in the first half,” read the update.
Chief executive Chris Macdonald commented over the 2015 calendar year, discretionary funds under management grew by over £850m through organic growth alone.
“Part of this growth has been fuelled by the planned movement of advisory clients to discretionary mandates in BMI. This effects income in the current financial year ended 30 June 2016, but it is our stated aim and a positive for the group medium term.”
While the funds business increased its assets during the period, exceptional costs incurred in relation to two of its specialist funds prevented it from moving into profitability, as had been expected.
The group intends to issue its half year results on 17 March.
peter.walker@ft.com
