Financial Results

Brooks Macdonald Reports Profit Jump, Wins $40 Million South African Mandate

Amisha Mehta Assistant Editor London 18 September 2015

Brooks Macdonald Reports Profit Jump, Wins $40 Million South African Mandate

The UK-based wealth management group has posted profit growth in its latest results statement and announced a new South African deal.

London-listed Brooks Macdonald boosted its pre-tax profit by 8 per cent to £11.4 million ($17.7 million) in the year to the end of June.

The group's total funds under management reached £7.41 billion at the end of June, up 13 per cent year-on-year. This was driven by strong performance, which accounted for £218 million, and organic growth, represented by £645 million in net new business. 

Property assets under administration, managed by Braemar Estates, climbed from £1.13 billion at the end of June 2014 to £1.14 billion. Meanwhile, revenue grew 12 per cent to £77.7 million as earnings per share dipped 1 per cent to 68.30p.

“We have continued to grow funds under management and increase profits whilst making considerable progress on our IT development, our distribution, improving our governance, completing two strategic alliances, broadening the senior management team and moving our head office,” said the group's chief executive, Chris Macdonald.

“Over the coming year we will look to continue with the progress made and look to drive performance, service and new business. Investment markets remain volatile and this is clearly a headwind for the industry as a whole, but encouragingly our new business has been strong for the first quarter of the new financial year.”

In other news, Brooks Macdonald International, a subsidiary of the group, has won a $40 million mandate to manage half of all South Africa-based Personal Trust International's (PTI) offshore portfolios. 

The mandate will be split across PTI's two Guernsey-registered funds and BMI will manage half of the circa $80 million in assets of each of the US dollar-denominated funds. BMI will use both active and passive investments for the funds, which will provide exposure to a diversified range of asset classes. 

“This appointment recognises BMI's international capabilities and our expertise in managing over $10 billion of multi-asset, risk-rated, multi-currency portfolios. This is an important step for BMI following the granting of our licence to operate in South Africa and the creation of our dedicated Africa team, and further cements our commitment to partnering with local financial services providers in the region,” said Macdonald.

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