Brooks Macdonald Funds Under Management Gained In Six Months To End-2013

Stephen Little

27 January 2014

saw its funds under management increase by 11.1 per cent to £5.68 billion ($9.37 billion) for its half year ending 31 December, a rise of £570 million.

This growth was a combination of performance (around £160 million) and net new business (around £150 million) over the quarter.

The firm said in its half year trading update that as at 31 December 2013 advisory funds totalled £374 million, up 5.6 per cent from £354 million at the end of September.

"Trading for the half year was in line with the board's expectations, with revenues and profits ahead of the same period last year and strategic progress made through both organic and acquisitive initiatives," Brooks MacDonald said.

The group's property management business Braemar Estates had property assets under administration of £1.071 billion, while third party assets under administration were £160 million, compared to £140 million at the end of September.

During the six months, Brooks Macdonald entered into a new partnership with North Row Capital in which it will hold a 60 per cent interest. The balance is owned by Steven Grahame and Gerald Parkes, who developed the investment approach behind the North Row Liquid Property fund.

Brooks said the fund will be launched in February and offers investors liquid exposure to global real estate markets by investing mainly in property derivatives, as well as property equity and debt to gain exposure to the direct property markets.

In December, Brooks Macdonald acquired an option to purchase Levitas Investment Management. The group said it expects Levitas to achieve significant growth over the next five years and be earnings enhancing in the next financial year.

"The first half of our financial year has seen good progress made across the group, with strong organic growth in funds under management aided in part by positive investment conditions. We continue to review interesting acquisition opportunities as evidenced by the Levitas and North Row Capital transactions, both of which further enhance our investment offering," said chief executive Chris Macdonald.