In the quarter 31 December 2017, the investment manager’s funds under management grew about 7% from £11bn to £11.7bn. Over the last six months, the group’s FUM have risen by 12.3%, nearly triple the gains seen by the MSCI WMA Balanced Index, which was up 4.3%.
Its growth was largely driven by net inflows from new clients and stronger performance across its portfolios. The firm took in £431m in net new business during the second quarter, while better performance contributed an additional £319m.
The group added that the revenue impact of higher FUM was partly offset by lower yields from shifts in its product mix and pricing pressures from a “competitive environment,”as well as reduced transactional income thanks to “lower market volatility”.
Nearing the halfway point, the firm said the anticipated outcome for the whole year “remains in line with management’s expectations”.
Reflecting on the results, Caroline Connellan (pictured), Brooks Macdonald chief executive, was pleased the group “maintained the good momentum seen in the first quarter” into the second.
“Our focus on our client and adviser relationships has supported strong net new business which, combined with good portfolio performance, has resulted in substantial FUM growth across all areas of our business,” she said.
“Our strong FUM trajectory, combined with a disciplined approach to costs, means we are well placed to mitigate external pressures on revenue yield.
“We continue to make good progress with our planned investment in our operational and risk management framework to build a stronger, sustainable platform for the business. This will enable us to take full advantage of the significant growth opportunities open to us, whilst enhancing efficiency and delivering improved operating margins in the medium term.”
The group will publish its half year results on 14 March 2018.
