29th Jan 2020 07:00
29 January 2020
Brewin Dolphin Holdings PLC
("Brewin Dolphin" or the "Company" or the "Group")
Quarterly Trading Update
For the quarter ended 31 December 2019
Brewin Dolphin announces a trading update for the first quarter of its financial year ending 30 September 2020.
Q1 Highlights
·; Total funds increased by 7.8% to £48.5bn (FY 2019: £45.0bn) including £2.7bn of acquired funds from Investec Capital & Investments (Ireland) Limited ("ICIIL")1. Excluding acquired funds, total funds increased by 1.8%.
·; Discretionary funds increased by 4.2% to £41.8bn (FY 2019: £40.1bn), including £1.0bn of acquired funds, driven by strong investment performance and positive organic net inflows. Excluding acquired funds, discretionary funds grew by 1.7%.
o Discretionary net inflows, including transfers, were £0.1bn (annualised growth of 1.0%) and included a low-margin institutional account exit of £0.1bn. Excluding this, the annualised growth rate is 2.0%.
o MPS funds grew to £4.1bn (FY 2019: £3.8bn) with net flows of £0.2bn, an annualised growth rate of 21.1%.
·; Total quarterly income amounted to £89.6m (Q1 2019: £77.7m), an increase of 15.3%, including £4.0m (Q1 2019: £nil) as a result of recent acquisitions.
o Total discretionary income increased by 15.0% to £76.5m (Q1 2019: £66.5m) due to growth in funds and higher commission income from increased activity levels.
o Financial planning income grew 37.1% to £8.5m (Q1 2019: £6.2m), assisted by recent acquisitions and growth in 1762 from Brewin Dolphin.
David Nicol, Chief Executive said:
"I am pleased with our performance in the quarter, particularly our positive organic net inflows in challenging market conditions. We have diversified our business mix through building more client choice and client-centric propositions, which is supporting our growth. We remain on-track with the implementation of both our new client management system and core custody and settlement system. The integration of our acquisition in Ireland is progressing well and we remain confident about the long-term growth opportunities. Market sentiment appears to be improving and we look forward to capitalising on this as the year progresses."
1 Completed on 01 November 2019.
Funds
Total funds by service category1
£bn | 31 December 2018 | 30 September 2019 | 31 December 2019 | Change | |
Last12 months | Last3 months | ||||
Direct discretionary | 23.2 | 26.3 | 27.5 | 18.5% | 4.6% |
Intermediaries | 8.8 | 10.0 | 10.2 | 15.9% | 2.0% |
MPS | 2.9 | 3.8 | 4.1 | 41.4% | 7.9% |
Indirect discretionary | 11.7 | 13.8 | 14.3 | 22.2% | 3.6% |
Total discretionary | 34.9 | 40.1 | 41.8 | 19.8% | 4.2% |
Execution only | 3.5 | 3.9 | 4.5 | 28.6% | 15.4% |
BPS | 0.2 | 0.2 | 0.2 | - | - |
Advisory | 0.9 | 0.8 | 2.0 | 122.2% | 150.0% |
Total funds | 39.5 | 45.0 | 48.5 | 22.8% | 7.8% |
Indices | |||||
MSCI WMA Private Investor Balanced Index | 1,484 | 1,665 | 1,679 | 13.1% | 0.8% |
FTSE 100 | 6,728 | 7,408 | 7,542 | 12.1% | 1.8% |
Funds flow by service category - detailed movement1 in the quarter
£bn | 30 September 2019 | Inflows | Outflows | Internal transfers | Net flows | Growth rate2 | Acquired | Investment performance | 31 December 2019 |
Direct discretionary | 26.3 | 0.2 | (0.2) | (0.1) | (0.1) | (1.5)% | 1.0 | 0.3 | 27.5 |
Intermediaries | 10.0 | 0.2 | (0.2) | - | - | -% | - | 0.2 | 10.2 |
MPS | 3.8 | 0.2 | - | - | 0.2 | 21.1% | - | 0.1 | 4.1 |
Indirect discretionary | 13.8 | 0.4 | (0.2) | - | 0.2 | 5.8% | - | 0.3 | 14.3 |
Total discretionary | 40.1 | 0.6 | (0.4) | (0.1) | 0.1 | 1.0% | 1.0 | 0.6 | 41.8 |
Execution only | 3.9 | - | - | 0.1 | 0.1 | 10.3% | 0.5 | - | 4.5 |
BPS | 0.2 | - | - | - | - | -% | - | - | 0.2 |
Advisory | 0.8 | - | - | - | - | -% | 1.2 | - | 2.0 |
Total funds | 45.0 | 0.6 | (0.4) | - | 0.2 | 1.8% | 2.7 | 0.6 | 48.5 |
1 The funds figures are rounded to one decimal place and therefore may not always cast.
2 Annualised.
Income
£m | Quarter ended 31 December 2019 | Quarter ended 31 December 2018 | Change | ||||||
Fees | Commission | Total | Fees | Commission | Total | Fees | Commission | Total | |
Direct discretionary | 42.0 | 13.9 | 55.9 | 36.5 | 12.1 | 48.6 | 15.1% | 14.9% | 15.0% |
Intermediaries | 17.6 | 0.3 | 17.9 | 15.6 | 0.3 | 15.9 | 12.8% | - | 12.6% |
MPS | 2.7 | - | 2.7 | 2.0 | - | 2.0 | 35.0% | - | 35.0% |
Indirect discretionary | 20.3 | 0.3 | 20.6 | 17.6 | 0.3 | 17.9 | 15.3% | - | 15.1% |
Total discretionary | 62.3 | 14.2 | 76.5 | 54.1 | 12.4 | 66.5 | 15.2% | 14.5% | 15.0% |
Financial planning | n/a | n/a | 8.5 | n/a | n/a | 6.2 | n/a | n/a | 37.1% |
Execution only | 1.1 | 1.6 | 2.7 | 1.1 | 1.5 | 2.6 | - | 6.7% | 3.8% |
BPS | 0.3 | - | 0.3 | 0.3 | - | 0.3 | - | - | - |
Advisory | 0.9 | 0.2 | 1.1 | 0.6 | 0.1 | 0.7 | 50.0% | 100.0% | 57.1% |
Other income1 | n/a | n/a | 0.5 | n/a | n/a | 1.4 | n/a | n/a | (64.3)% |
Total income | n/a | n/a | 89.6 | n/a | n/a | 77.7 | n/a | n/a | 15.3% |
1 Q1 2020 other income includes the impact of the new client interest policy introduced in January 2019.
The Company's LEI number is 213800PS7FS5UYOWAC49
For further information:
Brewin Dolphin Holdings PLC | |
David Nicol, Chief Executive | Tel:+44 (0) 20 7248 4400 |
Siobhan Boylan, Chief Financial Officer | Tel:+44 (0) 20 7248 4400 |
Carla Bloom, Head of Investor Relations | Tel:+44 (0) 20 7248 4400 |
Camarco | |
Ben Woodford / Jane Glover | Tel:+44 (0) 20 3757 4990 |
Notes to Editors:
About Brewin Dolphin
Brewin Dolphin is one of the UK and Ireland's leading independent providers of discretionary wealth management.
We continue to focus on discretionary investment management, and we manage £41.8 billion of funds on a discretionary basis. In line with the premium we place on personal relationships, we have built a network of 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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