Investments  

Brooks Macdonald turns to ESG for growth

Brooks Macdonald turns to ESG for growth

Wealth manager Brooks Macdonald expects its ESG product range to be a source of growth in the years ahead.

The firm's chief executive Caroline Connellan said she had seen greater interest from advisers in sustainable funds and the firm was keen to respond to that.

Ms Connellan said: “Across the industry there has been a lot of focus on this area of course.

"We are seeing a lot of advisers interested in this, it really works for us as a way to support the broader conversation with advisers, the clients want to have some assets in these types of funds, and some in other types, and that's something we can work with the client and adviser to create.

"It’s one of the areas we have invested in, along with a decumulation product and a court of protection service.” 

She was speaking in the wake of the company announcing its results for the year to the end of June 2019, which showed assets under management had increased 6.8 per cent on the previous year to £13.2bn.

She said the increase was driven by inflows into the company’s model portfolio service, which grew assets by 15 per cent, and the Defensive Capital fund, which is now £700m in size. 

Brooks Macdonald had been engaged in a period of cost cutting, but Ms Connellan said this was now coming to an end, with the launch of new products and opening an office in Leeds being on the agenda.

Ms Connellan added: “We remain cautious about the short-term outlook given the backdrop of political and macroeconomic uncertainty and its continuing effect on client sentiment.

"Nonetheless, the fundamental opportunity for Brooks Macdonald remains strong, and we are confident in our positioning and our continued ability to drive sustainable value-enhancing growth over the medium term.” 

david.thorpe@ft.com