Braemar management portfolio dips 4%

Hale-based property management business Braemar Estates saw a 4.4% decrease in assets under administration in the final quarter of last year; from £1.142bn on 30 September to £1.091bn on 31 December.

The fall was detailed in listed parent company Brooks Macdonald Group's trading update for its half year ended 31 December 2014 this morning. Brooks Macdonald is a wealth manager with a diver range of funds including property and non-property.

Chris Macdonald, chief executive of Brooks Macdonald Group said: "On a quarterly basis, we see short term fluctuations in property assets under administration due to both changes in property valuations and clients reviewing their management instructions. Since the period end we have continued to see an encouraging pickup in new management activity and are confident of our prospects over the medium to long term. Over the past three years, Braemar Estates has grown property assets under administration by 40% from £780m at 31 December 2011, and we anticipate this long term growth trend will continue."

The group said overall trading "for the half year was in line with management expectations, with discretionary funds under management rising by 6.15% over the period. Continued good progress was made despite a period of volatility for markets and continued change in the industry."

As at 31 December 2014, discretionary funds under management totalled £6.953bn, an increase of 4.1% (30 September 2014: £6.677bn).

Chris Macdonald, chief executive of Brooks Macdonald, said: "The group has continued to make good progress in Q2 with funds under management just under £7bn, capping a solid first half performance despite volatile markets and continued industry change.

"Over the 2014 calendar year discretionary funds under management have grown by over £1.27bn (including the acquisition of DPZ of £360m in April) and over the first six months of the current financial year by over £400m."

Shares in Brooks Macdonald were unchanged at 1325p, close to the 12-month low of 1300p, valuing the business at £180m.

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UPDATE: Adds comment from Brooks Macdonald chief executive Chris Macdonald.

By Ed

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