29th Jan 2014 08:02
LONDON (Alliance News) - Wealth manager Brewin Dolphin Holdings PLC Wednesday said the funds it manages rose in the first quarter, while total income increased by 6.5% to GBP69.6 million because of strong growth in its core income from discretionary, advisory and execution only services.
In a statement, Brewin Dolphin said the total funds it manages or advises on rose to GBP28.9 billion from GBP28.2 billion during the three months to December 29, 2013.
"Continuing improvement in equity market conditions, allied to the increasingly encouraging outlook for the broader UK economy gives us growing confidence that successful implementation of our strategy will create long term value for both our customers and our shareholders," Brewin Dolphin said in a statement.
The company said it saw a GBP200 million net outflow in the first quarter, with the rise funds under management coming about because of a positive market movement adding GBP800 million to the overall figure. Discretionary managed funds saw a net inflow of GBP300 million - in line with the wealth manager's 5% a year target - and a positive market movement of GBP700 million, while the advisory side saw a GBP400 million net outflow and a GBP100 million positive market movement.
First quarter total income grew to GBP69.6 million from GBP65.4 million in the corresponding quarter last year, driven by a 15% rise in income from the so-called core of discretionary, advisory and execution-only services which made up GBP63.8 million of the overall sum. The remainder was made up of commissions and fees growth.
Brewin Dolphin said its income grew over the quarter because of good investment performance and the net inflows into the discretionary service.
When taking into account execution-only funds, Brewin Dolphin's total funds increased to GBP36.0 billion from GBP34.9 billion and achieved an overall net inflow of GBP100 million.
"The strategy of focusing on our discretionary service whilst completing the remaining reviews of advisory services is reflected in the on-going organic growth in discretionary funds and net outflows from advisory funds," Brewin Dolphin said in a statement.
"Net outflows from our advisory service categories continued in the quarter, in line with expectations, whilst achieving an increasingly successful rate of conversion to a discretionary managed service," the company added.
Brewin Dolphin shares are up 1.5% at 306.90p at the open Wednesday.
By Samuel Agini; [email protected]; @samuelagini
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