Brooks Macdonald Asset Management  

Brooks Macdonald assets break through £15bn mark

Brooks Macdonald assets break through £15bn mark

Brooks Macdonald has seen its fund under management rise 13 per cent in the second half of last year.

In its half-year results out this morning (March 11) the asset manager said funds stood at £15.5bn at the end of December, up from £13.7bn in June 2020 and £13.1bn in December 2019. 

The group saw net outflows of £367m in the half year, down from £506m in the preceding six-month period, signalling a positive trend, it said.

Article continues after advert

Brooks said the group’s net flows have been marginally positive in the calendar year to the end of February, excluding the Defensive Capital Fund which continues to experience outflows in line with trends in the Targeted Absolute Return sector.

As a result, net flows at the group level are expected to be modestly positive for H2.  

Caroline Connellan, chief executive officer, said the group's investment strategy had enabled it to weather the Covid storm.

She said: “Our success is down to our long-term plan. We made substantial investments into improving our business a few years ago.

"We had a clear plan and a clear strategy to execute it. That’s meant we were able to pivot quickly to what was required to operate successfully in the new Covid environment.

"In fact, we were able to successfully switch to home working within 48 hours and even employed new staff."

She added: “I am particularly proud of how our people have delivered for advisers and clients through the pandemic and I am grateful to them for their efforts.

"The blend of experience and expertise that our people have, from those already deeply embedded in the Brooks Macdonald client-centred culture to those bringing new external insights, is a great strength.”

The group’s revenue increased by 1.8 per cent to £55.9m in the second half of 2020 and underlying profit before tax was up 21.7 per cent to £14m. 

Brooks recently completed its acquisition of Lloyds Banking Group’s Channel Islands funds and wealth management business in November, which the firm said had boosted the international business's funds under management by 60 per cent.

It was also satisfied with the integration of Cornelian Asset Managers, the acquisition of which completed in February, and has delivered the planned benefits despite the pandemic.

Commenting on the possibility of future acquisitions, Ben Thorpe, finance director, said: “We are always scanning for possible acquisitions and because we have successfully completed two in one year, it’s given the industry confidence in our abilities and we are seen as a powerful player.” 

Aamina Zafar is a freelance reporter for FTAdviser