29th Jul 2015 07:00
29 July 2015
Brewin Dolphin Holdings PLC
Interim Management Statement
For the quarter ended 30 June 2015
Q3 Highlights
· | Total Discretionary Funds under Management £25.6bn (H1 2015: £26.2bn, FY 2014: £24.0bn). | |
· | Total income of £73.0m (Q3 2014: £73.1m). | |
· | Core income £66.9m (Q3 2014: £67.0 m). | |
ú | Fee income £47.4m (Q3 2014: £46.1m). | |
ú | Commission income £19.5m (Q3 2014: £20.9m). | |
· | 84% of core income from Discretionary service £56.1m (Q3 2014: £54.8m). | |
· | Annualised rate of net inflow in Discretionary Funds under Management: 3% in Q3 2015, 5% YTD, in line with our target of 5% per annum, with £0.9bn of net inflows into this service YTD. | |
· | Announced sale of Stocktrade on 14 May 2015 for £14m. Year to date Stocktrade revenue is £7.5m. | |
· | The FTSE WMA Private Investor Series Balanced Portfolio index fell by 3.4% in the 3 month period to 30 June 2015, and the FTSE 100 fell by 3.7% in the same period. | |
David Nicol, Chief Executive said:
"The ongoing development of the business ensures the Group is well positioned to benefit from the long term opportunities in the Wealth Management sector. The Group's overall Q3 performance has been good, although weak global financial markets at the end of the quarter contributed to a decline in Funds under Management and impacted revenue progression. Our financial position remains strong and we continue to be confident about the long term growth of the business."
Funds under Management ("FUM")
£bn | % movement
| ||||||
29 June 2014 | 28 Sept 2014 | 31 March 2015 | 30 June 2015 | 12 months | 9 months | 3 months | |
Discretionary | 23.7 | 24.0 | 26.2 | 25.6 | 8% | 7% | (2)% |
Advisory Managed | 4.2 | 4.1 | 3.8 | 3.5 | (17)% | (15)% | (8)% |
Advisory Dealing | 1.4 | 1.3 | 0.7 | 0.7 | (50)% | (46)% | 0% |
Total Advisory | 5.6 | 5.4 | 4.5 | 4.2 | (25)% | (22)% | (7)% |
Total Managed / Advised | 29.3 | 29.4 | 30.7 | 29.8 | 2% | 1% | (3)% |
Execution Only | 3.1 | 3.1 | 3.8 | 3.7 | 19% | 19% | (3)% |
Total Funds (excluding Stocktrade) | 32.4 | 32.5 | 34.5 | 33.5 | 3% | 3% | (3)% |
Stocktrade | 4.3 | 4.3 | 4.6 | 4.6 | 7% | 7% | 0% |
Total Funds | 36.7 | 36.8 | 39.1 | 38.1 | 4% | 4% | (3)% |
Percentage of managed FUM in Discretionary | 81% | 82% | 85% | 86% | |||
Indices | |||||||
FTSE WMA Private Investor Series Balanced Portfolio | 3,435 | 3,462 | 3,684 | 3,557 | 3.6% | 2.7% | (3.4)% |
FTSE 100 | 6,758 | 6,649 | 6,773 | 6,521 | (3.5)% | (1.9)% | (3.7)% |
Funds under Management - detailed movement in the quarter
£bn | 3 months to 30 June 2015 | |||||||
31 March 2015 | Inflows | Outflows | Service Switching | Net Flows | Annualised Growth % | Market Movement | 30 June 2015 | |
Discretionary | 26.2 | 0.5 | (0.3) | - | 0.2 | 3% | (0.8) | 25.6 |
Advisory Managed | 3.8 | - | (0.1) | (0.1) | (0.2) | (21)% | (0.1) | 3.5 |
Advisory Dealing | 0.7 | - | - | - | - | 0% | - | 0.7 |
Total Advisory | 4.5 | - | (0.1) | (0.1) | (0.2) | (18)% | (0.1) | 4.2 |
Total Managed / Advised | 30.7 | 0.5 | (0.4) | (0.1) | - | 0% | (0.9) | 29.8 |
Execution Only | 3.8 | 0.1 | (0.2) | 0.1 | - | 0% | (0.1) | 3.7 |
Total Funds (excluding Stocktrade) | 34.5 | 0.6 | (0.6) | - | - | 0% | (1.0) | 33.5 |
Stocktrade | 4.6 | 0.2 | (0.1) | - | 0.1 | 9% | (0.1) | 4.6 |
Total Funds | 39.1 | 0.8 | (0.7) | - | 0.1 | 1% | (1.1) | 38.1 |
Funds under Management - detailed movement year to date
£bn | 9 months to 30 June 2015 | |||||||
28 Sept 2014
| Inflows
| Outflows
| Service Switching
| Net Flows
| Annualised Growth%
| Market Movement
| 30 June 2015
| |
Discretionary | 24.0 | 1.6 | (0.9) | 0.2 | 0.9 | 5% | 0.7 | 25.6 |
Advisory Managed | 4.1 | - | (0.2) | (0.5) | (0.7) | (23)% | 0.1 | 3.5 |
Advisory Dealing | 1.3 | - | (0.1) | (0.5) | (0.6) | (62)% | - | 0.7 |
Total Advisory | 5.4 | - | (0.3) | (1.0) | (1.3) | (32)% | 0.1 | 4.2 |
Total Managed / Advised | 29.4 | 1.6 | (1.2) | (0.8) | (0.4) | (2)% | 0.8 | 29.8 |
Execution Only | 3.1 | 0.4 | (0.5) | 0.8 | 0.7 | 30% | (0.1) | 3.7 |
Total Funds (excluding Stocktrade) | 32.5 | 2.0 | (1.7) | - | 0.3 | 1% | 0.7 | 33.5 |
Stocktrade | 4.3 | 0.4 | (0.2) | - | 0.2 | 6% | 0.1 | 4.6 |
Total Funds | 36.8 | 2.4 | (1.9) | - | 0.5 | 2% | 0.8 | 38.1 |
Discretionary Funds under Management ("FUM") were £25.6bn on 30 June 2015, a reduction of £0.6bn over the quarter, with the negative market performance offsetting net inflows.
The net inflows of £0.2bn in the quarter represented an annualised growth rate of 3%. Year to date net inflows were £0.9bn, an annualised growth rate of 5%, which is in line with our target. The weak performance of the financial markets contributed to a reduction in the market value of Discretionary FUM by £0.8bn in the quarter.
As a result of transfers of FUM between services, external outflows and weak market performance, Advisory FUM fell by £0.3bn to £4.2bn in Q3 2015. Execution Only FUM fell by £0.1bn in the quarter to £3.7bn.
Income
£m | Third quarter ended | Year to date to | |||||
30 June 2015 | 29 June 2014 | Change | 30 June 2015 | 29 June 2014 | Change | ||
Fees | 47.4 | 46.1 | 3% | 143.3 | 132.1 | 8% | |
Commissions | 19.5 | 20.9 | (7)% | 59.6 | 69.3 | (14)% | |
Core Income | 66.9 | 67.0 | 0% | 202.9 | 201.4 | 1% | |
Other | 6.1 | 6.1 | 0% | 18.5 | 18.0 | 3% | |
Total Income | 73.0 | 73.1 | 0% | 221.4 | 219.4 | 1% | |
Core Income by Service | |||||||
Discretionary | 56.1 | 54.8 | 2% | 168.8 | 162.5 | 4% | |
Advisory / Execution only | 10.8 | 12.2 | (11)% | 34.1 | 38.9 | (12)% | |
Core Income | 66.9 | 67.0 | 0% | 202.9 | 201.4 | 1% | |
Total quarterly income of £73.0m was comparable to the same period in 2014 (Q3 2014: £73.1m).
Core income for the quarter, whilst broadly similar to Q3 2014, saw growth in fees of 3% to £47.4m, offset by commission income falling by 7% to £19.5m. Discretionary service income increased by 2% to £56.1m (Q3 2014: £54.8m), and contributed 84% of core income.
Other income was £6.1m (Q3 2014: £6.1m) with growth in financial planning income offset by reduced net interest income.
Year to date total income increased 1% to £221.4m from £219.4m in 2014.
Core income for the nine months grew by 1% to £202.9m, with fee income growing by 8% to £143.3m, offset by a 14% reduction in commission income to £59.6m. Fee income increased largely as a result of growth in Discretionary FUM (Q3 2015: £25.6bn, Q3 2014: £23.7bn). Commissions reduced as a result of lower transaction volumes and clients joining on "fee only" rate cards. The lower transaction volumes arose partly because of volatile markets in the early part of the financial year.
Other income increased by 3% to £18.5m in the year to date, with growth in financial planning income of £2m, largely offset by reduced net interest income.
The Group's financial position remains strong.
Stocktrade
The Group announced the sale of its Stocktrade business on 14 May 2015. Year to date Stocktrade revenue is £7.5m. Stocktrade's financial performance will be reported as discontinued operations for the financial year ended 30 September 2015, and prior year results will be restated accordingly.
Capital Markets Day
The Group will host a Capital Markets Day for institutional investors and analysts on Tuesday 22 September 2015.
For further information please contact:
David Nicol, Chief Executive
Andrew Westenberger, Finance Director
Andrew Monkhouse, Treasurer & Head of Investor Relations
Brewin Dolphin Holdings PLC
020 7248 4400
Andrew Hayes / Wendy Baker
Hudson Sandler
020 7796 4133
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