Investments  

Brooks Macdonald assets hit £13.2bn

Brooks Macdonald assets hit £13.2bn

Brooks Macdonald has seen its funds under management increase by nearly 7 per cent to £13.2bn in the year to the end of June.

According to the quarterly figures published by the investment manager today (July 24), most of the 6.8 per cent growth in assets came from investment performance, which accounted for 3.5 per cent of the increase, while 3.3 per cent was down to net new business.

In comparison, the MSCI WMA Private Investor Balanced Index increased by 2.2 per cent and did so despite historically low levels of industry net flows and weak client sentiment, the firm reported.

Article continues after advert

According to the results, Brooks Macdonald’s total funds under management was a record for the firm.

The Aim-listed company reported that overall yields were broadly stable throughout the year and that it expected revenue growth to be broadly in line with the funds under management growth.

It also reported that its “efficiency and effectiveness initiatives” announced in January — when the firm went on a cost cutting drive as market conditions had put pressure on revenue — were delivering as planned and had improved underlying profit margins.

Over the three months to the end of June, funds under management rose by £500m, an increase of 3.5 per cent over the quarter.

New net business for the quarter was broadly flat at £2m while investment performance stood at 3.5 per cent.

Caroline Connellan, chief executive of Brooks Macdonald, said: “I am pleased to report record discretionary funds under management at the year end of £13.2bn.

“We have generated positive net new business over the year and delivered strong investment performance, despite extremely low net flows across the industry and continuing macroeconomic and political uncertainty.”

Ms Connellan said the firm had taken decisive steps to streamline the business which had helped it deal with the current challenging environment.

imogen.tew@ft.com

What do you think about the issues raised by this story? Email us on fa.letters@ft.com to let us know.