Brooks Macdonald funds swell despite ‘negative client sentiment’
Braemar Estates parent, Brooks Macdonald Group, the AIM listed investment manager, continued to increase funds under management despite volatility in the market caused by Brexit.
In a trading update for its financial year ended 30 June 2016, Brooks Macdonald said: “In challenging market conditions the group has continued to make considerable progress. Our second half was stronger than the first and trading for the year as a whole was in line with our expectations. Discretionary funds under management rose to a landmark total of over £8bn, with organic growth (net of markets) of 11.6% over the year.
“As has been widely reported, the recent EU referendum vote has increased investment volatility and negatively affected client sentiment. In addition, we had hoped to launch two new funds in the final quarter of our financial year and both did not occur due to the uncertainties around the referendum.”
As at 30 June 2016, discretionary funds under management totalled £8.301bn (30 June 2015: £7.41bn).
The Manchester-based property asset management business, Braemar Estates, had assets under administration of £1.10b at the year-end (30 June 2015: £1.14bn), a decrease of 0.32%, or £37m.
Chris Macdonald, chief executive of Brooks Macdonald, commented: “Against a backdrop of highly volatile market conditions, added to by the recent Brexit vote, we have made good progress over the year. Discretionary funds are up nearly 12%, the majority of which was organic growth as we continued to attract new client funds through our strong intermediary relationships.
“In our 25th year I am delighted that discretionary funds under management now exceed £8.3bn and we look forward to making further progress over the new financial year.”
Shares in Brooks Macdonald rose 19p to 1775p.
