26th Jan 2017 07:00
26 January 2017
Brewin Dolphin Holdings PLC
Interim Management Statement
For the quarter ended 31 December 2016
Encouraging growth in core income and discretionary funds
Brewin Dolphin Holdings PLC (the 'Company' or the 'Group') today issues the following Interim Management Statement for the first quarter of the financial year, ending 30 September 2017.
Q1 Highlights
· Q1 discretionary funds inflow of £0.7bn driven by ongoing inflows from all channels.
· Discretionary funds outflows fell to £0.2bn (Q1 2016: £0.3bn) in the quarter as a result of lower outflows from direct discretionary clients.
· Q1 net discretionary funds inflows increased to £0.5bn excluding transfers, representing 6.9% annualised growth (Q1 2016: £0.3bn, 4.8% p.a.).
· Total funds grew to £36.4bn (Q1 2016: £33.2bn, FY 2016: £35.4bn).
· Total core funds1 grew by 3.4% in the quarter to £33.5bn.
· Core income2 growth of 12.0% to £67.9m (Q1 2016: £60.6m) driven by organic fund flows and continued positive investment performance coupled with further growth in financial planning income.
· Continued decline in other income to £3.4m (Q1 2016: £6.6m), in line with expectations following the refocusing of the business on core services.
· Acquisition of Duncan Lawrie Asset Management Ltd ("DLAM"), announced on 19 December 2016, is expected to complete in the second half of the current financial year.
1 Core funds comprise discretionary and execution only funds.
2 Core income is defined as income derived from discretionary investment management, financial planning and execution only.
David Nicol, Chief Executive said:
'Momentum behind our growth strategy has continued to build during the first quarter and it's been a pleasing start to the financial year. Continued net organic growth in funds, driven by increasing inflows into our core discretionary service and a reduction in discretionary outflows, underlines the strength of the business during uncertain market conditions. The solid performance is underpinned by a commitment to deliver on our clear strategy. The progress we are making combined with our financial strength gives us confidence in our long-term prospects.'
Funds
£'bn |
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| Change | |
| 31 Dec 2015 | 30 Sept 2016 | 31 Dec 2016 | Last12 months | Last3 months |
Discretionary |
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Direct | 19.4 | 21.1 | 21.6 | 11.3% | 2.4% |
Intermediaries | 5.6 | 6.5 | 6.8 | 21.4% | 4.6% |
MPS | 0.8 | 1.2 | 1.6 | 100.0% | 33.3% |
BPS | 0.1 | 0.1 | 0.1 | 0.0% | 0.0% |
Total discretionary | 25.9 | 28.9 | 30.1 | 16.2% | 4.2% |
Execution only | 3.8 | 3.5 | 3.4 | -10.5% | -2.9% |
Core funds | 29.7 | 32.4 | 33.5 | 12.8% | 3.4% |
Advisory | 3.5 | 3.0 | 2.9 | -17.1% | -3.3% |
Total funds | 33.2 | 35.4 | 36.4 | 9.6% | 2.8% |
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Indices |
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FTSE WMA Private Investor Series Balanced Portfolio | 3,531 | 3,915 | 4,010 | 13.6% | 2.4% |
FTSE 100 | 6,242 | 6,899 | 7,143 | 14.4% | 3.5% |
Q1 2017 Funds Movement
£'bn | 30 Sept2016 | Inflows | Outflows | Internal transfers | Net flows | Growth rate* | Investment performance | 31 Dec2016 |
Discretionary |
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Direct | 21.1 | 0.2 | (0.1) | - | 0.1 | 1.9% | 0.4 | 21.6 |
Intermediaries | 6.5 | 0.3 | (0.1) | - | 0.2 | 12.3% | 0.1 | 6.8 |
MPS | 1.2 | 0.2 | - | - | 0.2 | 66.7% | 0.2 | 1.6 |
BPS | 0.1 | - | - | - | - | 0.0% | - | 0.1 |
Total discretionary | 28.9 | 0.7 | (0.2) | - | 0.5 | 6.9% | 0.7 | 30.1 |
Execution only | 3.5 | 0.1 | (0.5) | 0.1 | (0.3) | n/a | 0.2 | 3.4 |
Core funds | 32.4 | 0.8 | (0.7) | 0.1 | 0.2 | n/a | 0.9 | 33.5 |
Advisory | 3.0 | - | - | (0.1) | (0.1) | n/a | - | 2.9 |
Total funds | 35.4 | 0.8 | (0.7) | - | 0.1 | n/a | 0.9 | 36.4 |
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* annualised |
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Income
£'m | Q1 2017 | Q1 2016 | Change |
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Discretionary investment management | 61.0 | 54.2 | 12.5% |
Financial planning | 4.5 | 4.0 | 12.5% |
Execution only | 2.4 | 2.4 | 0.0% |
Core income | 67.9 | 60.6 | 12.0% |
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Advisory investment management | 3.3 | 4.8 | n/a |
Trail income | - | 1.0 | n/a |
Interest | 0.1 | 0.8 | n/a |
Non-core income | 3.4 | 6.6 | n/a |
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Total income | 71.3 | 67.2 | 6.1% |
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Fees and Commissions
£'m | Q1 2017 | Q1 2016 | Change |
Core fees | 49.1 | 43.4 | 13.1% |
Core commissions | 14.3 | 13.6 | 5.1% |
Advisory fees | 2.4 | 3.3 | -27.3% |
Advisory commissions | 0.9 | 1.1 | -18.2% |
Total fees | 51.5 | 46.7 | 10.3% |
Total commissions | 15.2 | 14.7 | 3.4% |
Financial planning | 4.5 | 4.0 | 12.5% |
Other income | 0.1 | 1.8 | n/a |
Total income | 71.3 | 67.2 | 6.1% |
For further information:
Brewin Dolphin Holdings PLC |
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David Nicol, Chief Executive | Tel: +44 (0)20 7248 4400 |
Andrew Westenberger, Finance Director | Tel: +44 (0)20 7248 4400 |
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FTI Consulting |
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David Waller | Tel: +44 (0)20 3727 1651 |
Edward Berry | Tel: +44 (0)20 3727 1046 |
Notes to Editors:
About Brewin Dolphin
Brewin Dolphin is one of the UK's leading independent providers of discretionary wealth management. We offer award-winning personalised wealth management services that meet the varied needs of over 100,000 account holders, including individuals, charities, and pension funds.
Our focus on discretionary investment management has led to growth in client funds and we now manage £30.1 billion on a discretionary basis. In line with the premium we place on personal relationships, we have built a network of 28 offices across the UK, Channel Islands and the Republic of Ireland, staffed by qualified investment managers and financial planners. We are committed to the most exacting standards of client service, with long-term thinking and absolute focus on our clients' needs at the core.
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