Brooks Macdonald has announced a return to positive net flows in results for its final quarter, while strong revenue growth WH Ireland drove the DFM to profit for the first time in five years.
Brooks Macdonald finished the three months to 30 June 2021 with funds under management (FUM) up at a record £16.5bn, compared to £15.6bn at the end of March, an increase of 5.3% and a 20.3% jump compared to the year end figures last year.
The jump in FUM was driven by positive investment performance and a return to positive net flows of £0.1bn.
“I’m pleased to see Brooks Macdonald returning to positive net flows and I’m hugely excited by the opportunity before us. We’ve put in an enormous amount of effort over the last few years to build the foundations for the future success of the group and I’m delighted with the progress we’ve made,” said Andrew Shepherd, CEO designate of Brooks Macdonald.
Funds under management increased by £2.8bn over the financial year. Much of this was down to its acquisition of Lloyds’ Channel Islands wealth management business, which added £0.9bn to total assets. Investment performance during the year added a further £2.2bn.
Investment performance over the year was at 4.4%, slightly higher than the MSCI Pimfa Private Investor Balanced Index’s rise of 4.3%, with its UKIM discretionary funds under management achieving positive net flows of £0.2bn.
WH Ireland reports first profit in five years
WH Ireland has reported a strong performance from its capital markets division and wealth management, as it delivers its first profit in five years, according to its final results for the year ended 31 March 2021.
Revenue was up at £29.6m, a 37% increase from the previous year figure of £21.6m.
Profit before tax for the year reached £1.0m, whereas the manager suffered a £3.3m loss for the year 2020.
“We have seen a year of significant progress despite the challenges posed due to the Covid pandemic. The business and our employees have performed extremely well and the result is our first profit for five years,” said Phillip Wale (pictured), chief executive officer.
“This progress, and the financial robustness it has provided, has enabled us to invest significantly in people and processes. This allows us to confidently grow the business to at least achieve our targets of £3bn of discretionary assets under management, with a 20% margin and to have a Capital Markets Division that can sustainably deliver revenue of £20m.”
Total assets under management for the year climbed to £2.1bn, marking a 40% increase, and an adjusted Ebidta of £3m, compared to a £0.9m loss the year before.
