The results show that Brooks Macdonald International, which has offices in Guernsey and Jersey, improved its underlying profit margin to 18.7% over the year. They also point to improving commercial performance and in particular the recent acquisition of the Lloyds Banking Group’s Channel Islands wealth management and fund business, which is set to provide further positive momentum over the year ahead.
The results comment that robust investment performance did not fully offset improving albeit slightly negative net flows, resulting in an overall funds under management (FUM) decline of 1.6%.
The results state that Andrew Shepherd has continued the reinvigoration of the International business, which also recently launched a Responsible Investment Service, and that he and his team have a clear plan to bring margins up to the levels of the UK Investment Management business in the medium term, with progress toward that target accelerated by the Lloyds transaction.
For the Group overall, the results show that the underlying profit margin was up from 19.6% to 21.2%, in line with the Group’s commitment to increase profit margin in the medium term, whilst record Group revenue was recorded of £108.6m, underlying profit of £23m, and year-end FUM of £13.7bn.
The results also noted that the Group strategy announced in 2017 was nearing completion and that it was now moving to a new stage of its strategy, based on a vision for Brooks Macdonald to be the leading investment manager for intermediaries.
Andrew Shepherd, CEO of Brooks Macdonald International, commented: “I am delighted with the continued disciplined execution of our strategy, particularly given the context of a challenging year with the unprecedented backdrop of COVID-19. For International, we have improved our profit margin and continue to reinvigorate the business in the Channel Islands, in particular through our Lloyds acquisition which we expect to be transformative for the business. I would like to thank the advisers and trustees we work with, and our clients, for their continued support and our people for their dedication and hard work.
“We are now a more robust business, confident in our vision for Brooks Macdonald International as the leading investment manager for trustees and advisers, leveraging our strengths. The short-term outlook is uncertain, with the UK economy affected by the progress of the pandemic and events surrounding Brexit. Nonetheless, the fundamental opportunity for Brooks Macdonald International remains strong, we are uniquely positioned in the market and confident about what the future holds.”