Brooks Macdonald reports 13% FUM growth despite ‘unhelpful Q4’

Discretionary funds under management at Brooks Macdonald totalled £7.41bn at the end of June, up from £6.55bn 12 months before, its trading statement revealed.

Likewise, investment growth declined, down £210m against an increase of £310m in 2014, while net new discretionary business for the year was significantly lower than the 24 months prior, totalling £154m compared to £750m and £645m in the 12 months to 30 June 2014 and 2013 respectively. Over the year discretionary funds grew by £863 million (or 13.1%). This was a fall of 0.75%.

As a comparison, the WMA Balanced index decreased by 3.43 per cent over the quarter.

Money within its asset management business, Brooks Macdonald Funds, rose from £518 million to £663 million, an increase of 28%.

Shares in Brooks Macdonald were up 2.2% to 1,780.00 pence on Friday morning.

“This has been achieved by a combination of organic growth and good investment performance.”Shore Capital analysts said: “Brooks Macdonald is demonstrating the best progress in generating organic flow growth within our DFM coverage and we see this well-managed group as core.”The broker gave a “buy” recommendation and 1742p target price”. ‘We successfully moved our London head office in May to new West End premises; this will facilitate further expansion and underlines our growth ambitions for the future, ‘ the firm told the market.

The group intends to issue its results for the year on Thursday 17 September 2015.