21st Jul 2022 12:00
(Alliance News) - Wealth manager Brewin Dolphin Holdings PLC on Thursday said its total funds in its financial third quarter fell due to volatility in the market.
Total funds stood at GBP51.7 billion as at June 30, down 8.2% from GBP56.3 billion at March 31. The firm's total funds performance was trumped by the MSCI PIMFA Private Investor Balanced and FTSE100 indices, which fell less steeply, down 7.4% and 4.6% respectively.
The negative performance was "due to the ongoing volatile and weak market performance and macroeconomic environment," the London-based investment advice company explained.
Brewin Dolphin lost GBP4.7 billion in investment performance.
However, it added GBP100 million in net inflows. Direct discretionary funds saw the most gross outflows, totalling GBP400 million, causing direct funds to decrease by 9.3% to GBP28.2 billion from GBP31.1 billion over the quarter to June 30.
The company's discretionary funds as a whole decreased by 8.5% to GBP45.2 billion at June 30 from GBP49.4 billion at March 31.
Compared to a year ago, total quarterly income was down 5.7% to GBP97.9 million from GBP103.8 million.
"We continue to see increased demand for our propositions and investment solutions, and we are well placed to capture the secular growth trends in the market," Chief Executive Officer Robin Beer said.
Brewin is in the process of being bought by Royal Bank of Canada's RBC Wealth Management for GBP1.6 billion. Under the acquisition plan announced on March 31, RBC will fork out 515 pence per Brewin Dolphin share, a 62% premium to its 318p closing price on March 30, a day before the announcement.
Brewin Dolphin shares rose 0.6% higher to 513.00p each in London on Thursday morning, almost reaching its 515p valuation by RBC's.
Brewin on Thursday said it expects the acquisition to complete by the end of the third quarter of the calendar year, so the end by the end of September.
By Tom Budszus; [email protected]
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