Aided by an improving trend of outflows, Brooks Macdonald total funds under management (FuM) has reached a record £15.5bn at the end of December 2020.
This was up from £13.7bn in June 2020 and £13.1bn at the end of 2019.
Go deeper with GlobalData
In its half-year results for the six months ending 31 December 2020, the firm attributed the growth in AuM to the acquisition of Lloyds Banking Group’s Channel Islands funds and wealth management business along with investment performance of 9.5%. In addition, net outflows narrowed to £367m from £506m.
Highlights
The British wealth manager’s underlying profit before tax rose was £14m in the six months to the end of 2020, a 22% increase from a year ago.
This was helped by a significantly increased underlying profit margin of 25.1% as a result of higher revenue as well as cost discipline.
Statutory profit before tax surged 84% to £14.1m, while revenue rose 2% to £55.9m.
The group said that it has raised the interim dividend by 9.5% to 23.0p, in keeping with its progressive dividend policy.
Comment
Brooks Macdonald CEO Caroline Connellan said: “Our ongoing robust investment performance, coupled with high-quality acquisitions, brought FUM to record levels and, alongside strong cost discipline, resulted in record underlying profit margin. This shows that the investment we have made and the actions we have taken are delivering financial and strategic benefits for the business now and positioning us well for the future.”
Connellan further said: “Looking ahead, client sentiment has held up well and, although the timescale for easing of lockdown restrictions remains uncertain, we continue to have a positive outlook. Momentum is building in the business and we are on track to meet full year profit expectations.”
Takeover of Lloyds’ offshore wealth arm
Brooks Macdonald wrapped up the acquisition of the wealth management and funds business of Lloyds Bank International in Channel Islands in December last year.
It agreed to purchase the business in June this year for a maximum consideration of £9.63m ($11.97m), including £2.5m of regulatory capital.
The deal followed the firm’s acquisition of Cornelian Asset Managers Group, which was closed in the first half of last year.
