Strong net organic growth at Brooks Macdonald has helped drive total assets under management (AUM) at the investment group to £12.4bn.
“Our net new business of 13% is again the highlight of our results, reflecting the strength of our client and adviser relationships,” said chief executive Caroline Connellan (pictured).
Total AUM growth was 19%, according to its full-year 2018 results.
Revenue broke the £100m mark for the first time, rising 14% to £101.6m, while profit before tax increased 6.1% to £18m from £17m the previous year.
Funds and MPS growth strong
The funds division grew 32% from £1.2bn in 2017 to £1.5bn. The results highlighted the Defensive Capital fund has moved over £500m and its third-party investment solution funds now hold £600m.
The Defensive Capital fund, managed by Jonathan Gumpel, has significantly outperformed the Investment Association Targeted Absolute Return sector delivering 17.9% over three years compared to the 4.5% average.
Bespoke and model portfolio services (MPS) grew 17% and 23% respectively.
UK investment management now represents £9.2bn AUM.
Macroeconomic headwinds hit investor sentiment
Connellan said the outlook for the business model remains strong despite headwinds.
“After a strong year and in line with the industry, we’re seeing some impact of macroeconomic uncertainty on investor sentiment as we move into the new financial year.”
The business’s medium-term focus is to improve profit margins.
In 2018, profit margins reduced to 17.7% from 19.1% due to a 16% increase in operating expenses. However, adjusting for £2m non-recurring expenditure margins would have improved to 19.7%.
