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REVIEW SUMMARY

Brooks Macdonald International

Brooks Macdonald is a trading name of Brooks Macdonald Group plc. which has been operating in various forms since 1991. As of January 2021, Brooks Macdonald has discretionary funds under management of £15.5 billion.

Brooks Macdonald now has twelve offices across the UK and the Channel Islands including London, East Anglia, Hampshire, Leamington Spa, Leeds, Manchester, Taunton, Tunbridge Wells, Scotland, Wales, Jersey and Guernsey. 

The company is licensed and regulated by the Jersey Financial Services Commission. Registered in Jersey no: 106423. Registered office: 5 Anley Street, St Helier, Jersey, JE2 3QE.

Our Verdict
A Closer Look
FAQs
Customer Reviews

Brooks Macdonald angle their international offering towards advisers, as opposed to marketing it directly to individual retail clients.

Brooks Macdonald services the international market from their Channel Islands base, working with professional advisers, trustees and private clients around the world. 

Brooks Macdonald's offers two core discretionary investment management services, namely:

  • Bespoke Portfolio Service (BPS)
  • Managed Portfolio Service (MPS)

1. Bespoke Portfolio Service:

  • The Bespoke Portfolio Service has a minimum initial investment amount of £250,000.
  • BPS portfolios are managed by investment managers operating within teams.
  • Brooks Macdonald's BPS portfolios are run in line with their centralised investment process (detailed below).
  • You can access their BPS service through a professional adviser authorised to give financial advice, or you can become a direct client of Brooks Macdonald.

2. Managed Portfolio Service:

  • The Managed Portfolio Service has a minimum initial investment amount of £20,000.
  • MPS portfolios are managed by a dedicated team of investment managers, supported by their investment, asset selection and asset allocation committees.
  • MPS is available to clients only through professional advisers authorised to give financial advice.
  • Brooks Macdonald International's MPS provides a choice of investment into a number of risk-rated model portfolios, each investing in an array of different assets.

Brooks Macdonald's investment management process includes:

  • Asset allocation: Asset allocation involves the distribution of capital to various asset classes (such as stocks and bonds) and geographies. It is based on the principle that the values of different assets react in different ways to changes in economic and market conditions.
  • Security selection: Brooks Macdonald's investment managers are organised into sector research teams, each of which specialises in a particular area of the market.
  • Constructing and managing portfolios: During the portfolio construction process, their investment managers create personalised portfolios in line with the individual investment mandate provided by the client’s adviser (they select investments from their central buy list).
  • Supervision and controls: Brooks Macdonald's investment committee oversees their investment process, approving all asset allocation and sector buy list decisions. 

NOTE:

  • The UK discretionary fund management service now claims to be fee-based and not product focused.
  • We would recommend reading the 'expert verdict' section of this review to learn why our team of experts gave Brooks Macdonald International 2 out of 5 stars.

Additionally, here's a free guide that can help you achieve better results. In this guide, you'll learn:

  • Academic evidence only shared with a select few firms across the world
  • A real-life example of why you should never try to outguess the market
  • Why a fund's past performance is not enough to predict future returns
  • Why you need to focus on what you can control and why this leads to a better investment experience
  • Why you should accept the markets for what they are
  • What can impact behaviour and make people seek instant gratification

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The Pros

> Strong brand
> Traditional approach to beating markets

The Cons

> Expensive way to invest
> Active methodology is academically questionable
> Pays retrocession commission to your adviser which can create conflict
What is the International Managed Portfolio Service about?

The International Managed Portfolio Service (International MPS) provides a choice of six actively managed portfolios, which include a range of investments that are suitable for a particular strategy.

It invests in vehicles such as offshore funds, open-ended investment companies (OEICs) and exchange-traded funds, across all asset classes, to create diversified portfolios that meet its risk criteria.

The service is open to investors with £25,000 or more to invest and is also available in euros and US dollars for €25,000 and $25,000.

Can I use Brooks Macdonald's DFM services if I have a lower investment amount?

Investors can gain access Brooks Macdonald's Discretionary Management Services for as little as £1,000 through their four risk-rated Multi-Asset Funds.

These funds are available in euros, US dollars and Singapore dollars for €1,000, $1,000 or S$1,000.

What does single-strategy solution mean?

Brooks Macdonald's single-strategy investment solutions invest directly in traditional asset classes, such as bonds and equities, in order to meet key outcomes such as income generation or long-term capital growth.

What is Brooks Macdonald's Corporate Bond Strategy?

Brooks Macdonald's Corporate Bond Strategy invests in a diversified portfolio of investment grade bonds to provide a balance of income, security and liquidity.

This strategy is targeted at investors looking for a regular income.

The strategy is available to investors with at least £500,000 to invest.

It is available in euros and US dollars.

What is the minimum amount I need in the Direct Equity Strategy?

Brooks Macdonald's Direct Equity Strategy is structured to try and provide growth through direct investment in high-quality stocks.

The strategy is available to investors with at least £250,000 to invest.

A bit conflicted

I was introduced to Brooks Macdonald via my IFA - it wasn't a name I was familiar with before - that's not to say it isn't a good company, just, not one I'd heard of.

I was fairly happy with my portfolio and it's general performance - but then I got a second opinion after googling around for more information about Brooks Macdonald in general.

The review from AES showed me the commission my adviser took and it's left a bit of a sour taste. Just upset that they were not transparent about it. 

Expert assessment of Brooks Macdonald International

While Brooks Macdonald is a respected name, we believe that this is an expensive way to invest.

If you already have a Discretionary Managed Portfolio with Brooks Macdonald, and it is worth £250,000 or more, we strongly recommend you seek a Second Opinion to ensure you are on track to get and keep the life you want.

Brooks Macdonald International - Brochure for UK Clients

Brooks Macdonald International - Client Investing Guide

Brooks Macdonald International - Privacy Notice

Brooks Macdonald International - Bespoke Portfolio Service for UK Clients

Brooks Macdonald International - Managed Portfolio Service for UK Clients

Brooks Macdonald International - Multi-Asset Funds

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