Funds under management at Brooks Macdonald remained flat during second half of 2019 as a result of softer client sentiment and the termination of an investment management agreement.
The wealth manager’s annual results, published on Thursday, revealed assets stood at £13.1bn at the end of the year compared with the same value on 31 July.
However, the firm’s assets jumped 12% over the year from £11.7bn at the end of December 2018.
This came despite net outflows of £500m during the year which the group put down to “softer client sentiment in the light of the political and macroeconomic backdrop, the group’s focus on efficiency and business quality and the termination of the investment management agreement for the Grosvenor Wealth Management funds”.
As previously reported, the pulling of a £244m mandate by Grosvenor Wealth Management contributed towards the £500m of outflows over the six months to 31 December 2019.
Elsewhere, revenue jumped by 8.1% compared with £55.8m driven by higher average funds under management. Underlying profit before tax was up 28.6% to £11.7m, with a profit margin of 21%.
Last month Brooks revealed several additions to its senior management line-up to incorporate the acquisition of Cornelian Asset Managers, which completed on 28 February adding £1.4bn of discretionary funds under management.
Brooks Macdonald chief executive Caroline Connellan (pictured) said: “I am delighted with the progress made during the first half. We continued to execute our strategy with discipline, making good progress on our commitment to improve underlying profit margins, in a strong first half financial performance, and welcomed Cornelian to the Brooks Macdonald group.
“We remain confident in the actions we are taking to set the business up for continued success, provide outstanding products and services for clients and advisers, and deliver value for shareholders.”
