Brooks Macdonald's investment performance took a £263 million hit, which offset the £180 million it generated in net new business. The group highlighted that the WMA balanced index fell by 3.85 per cent over the quarter, which saw China's equity slump send jitters across global stock markets.

The group’s property management business, Braemar Estates, suffered a fall in property assets under administration from £1.14 billion at the end of June to £1.073 billion at the end of September.

“Investment markets have been weak in the first quarter which has an inevitable impact on funds under management and financial performance,” said Chris Macdonald, chief executive of Brooks Macdonald.

“However we are pleased that new business is robust and demand for our risk rated investment solutions from both professional intermediaries and private clients continue to gain traction.” 

Last month, the group reported an 8 per cent rise in pre-tax profit to £11.4 million in the year to the end of June. Meanwhile its subsidiary Brooks Macdonald International secured a $40 million mandate to manage half of all South Africa-based Personal Trust International's offshore portfolios.