25th Jul 2018 07:00
25 July 2018
Brewin Dolphin Holdings PLC
("Brewin Dolphin" or the "Company" or the "Group")
Quarterly Trading Update
For the quarter ended 30 June 2018
Brewin Dolphin announces a quarterly trading update for the third quarter of the financial year ending 30 September 2018.
Q3 Highlights
· A quarter of record total income and continued strong organic growth in discretionary funds.
· Total funds in the quarter increased by 6.5% to £42.3bn (H1 2018: £39.7bn, FY 2017: £40.1bn).
o Core1 funds increased by 7.3% in the quarter to £40.9bn (H1 2018: £38.1bn, FY 2017: £37.4bn).
o Discretionary funds increased by 7.3% to £36.8bn (H1 2018: £34.3bn, FY 2017: £33.8bn) as a result of continued strong organic inflows and positive investment returns.
o Net discretionary funds inflows, including transfers, of £0.7bn representing an annualised growth rate of 8.2% (Q3 2017: 7.6%).
· Total income of £84.2m (Q3 2017: £77.3m), an increase of 8.9%.
o Core2 income of £82.2m up 11.2% on Q3 2017 (£73.9m) driven by strong year on year growth in core funds.
o Total fee income growth of 7.6% to £59.2m (Q3 2017: £55.0m).
o Total commission income of £18.3m (Q3 2017: £16.7m) following increases in transaction levels.
1 Core funds comprise discretionary funds, Brewin Portfolio Service ("BPS") and execution only funds.
2 Core income is defined as income derived from discretionary investment management, financial planning, Brewin Portfolio Service ("BPS") and execution only services.
David Nicol, Chief Executive said:
"It has been another excellent quarter in which we have continued to deliver on our long-term organic growth strategy. We are particularly pleased to have achieved another period of strong discretionary funds inflows which, combined with positive investment returns, has driven total income to a record £84.2 million for the quarter. The significant and evolving need for financial and investment advice in the UK continues to support our strategic direction and we remain confident in the outlook for the business."
Funds
Total funds by service category1
Change | ||||||
£bn | 30 June 2017 | 30 September 2017 | 31 March 2018 | 30 June 2018 | Last 12 months | Last 3 months |
Direct discretionary | 23.2 | 23.4 | 23.2 | 24.8 | 6.9% | 6.9% |
Intermediaries | 7.7 | 8.1 | 8.5 | 9.2 | 19.5% | 8.2% |
MPS | 2.0 | 2.3 | 2.6 | 2.8 | 40.0% | 7.7% |
Total discretionary | 32.9 | 33.8 | 34.3 | 36.8 | 11.9% | 7.3% |
BPS | 0.1 | 0.1 | 0.1 | 0.2 | n.a | n.a |
Execution only | 3.5 | 3.5 | 3.7 | 3.9 | 11.4% | 5.4% |
Core funds | 36.5 | 37.4 | 38.1 | 40.9 | 12.1% | 7.3% |
Advisory | 2.7 | 2.7 | 1.6 | 1.4 | (48.1)% | (12.5)% |
Total funds | 39.2 | 40.1 | 39.7 | 42.3 | 7.9% | 6.5% |
Indices | ||||||
MSCI WMA Private Investor Balanced Index | 1,533 | 1,545 | 1,527 | 1,597 | 4.2% | 4.6% |
FTSE 100 | 7,313 | 7,373 | 7,057 | 7,637 | 4.4% | 8.2% |
Funds flow by service category - detailed movement1 in the quarter
£bn | 31 March 2018 | Inflows | Outflows | Internal transfers | Net flows | Growth rate2 | Investment performance | 30 June 2018 | |
Direct discretionary | 23.2 | 0.3 | (0.3) | 0.2 | 0.2 | 3.4% | 1.4 | 24.8 | |
Intermediaries | 8.5 | 0.4 | (0.1) | - | 0.3 | 14.1% | 0.4 | 9.2 | |
MPS | 2.6 | 0.2 | - | - | 0.2 | 30.8% | - | 2.8 | |
Total discretionary | 34.3 | 0.9 | (0.4) | 0.2 | 0.7 | 8.2% | 1.8 | 36.8 | |
BPS | 0.1 | 0.1 | - | - | 0.1 | n.a | - | 0.2 | |
Execution only | 3.7 | - | (0.1) | 0.1 | - | n.a | 0.2 | 3.9 | |
Core funds | 38.1 | 1.0 | (0.5) | 0.3 | 0.8 | 8.4% | 2.0 | 40.9 | |
Advisory | 1.6 | - | - | (0.3) | (0.3) | n.a | 0.1 | 1.4 | |
Total funds | 39.7 | 1.0 | (0.5) | - | 0.5 | 5.0% | 2.1 | 42.3 | |
Notes
1 The funds figures are rounded to one decimal place and therefore may not always cast.
2 Annualised.
Funds flow by service category - detailed movement1 year to date
£bn | 30 September 2017 | Inflows | Outflows | Internal transfers | Net flows | Growth rate2 | Investment performance | 30 June 2018 |
Direct discretionary | 23.4 | 0.8 | (0.7) | 0.4 | 0.5 | 2.8% | 0.9 | 24.8 |
Intermediaries | 8.1 | 1.2 | (0.3) | (0.1) | 0.8 | 13.2% | 0.3 | 9.2 |
MPS | 2.3 | 0.5 | - | - | 0.5 | 29.0% | - | 2.8 |
Total discretionary | 33.8 | 2.5 | (1.0) | 0.3 | 1.8 | 7.1% | 1.2 | 36.8 |
BPS | 0.1 | 0.1 | - | - | 0.1 | n.a | - | 0.2 |
Execution only | 3.5 | 0.3 | (0.5) | 0.8 | 0.6 | 22.9% | (0.2) | 3.9 |
Core funds | 37.4 | 2.9 | (1.5) | 1.1 | 2.5 | 8.9% | 1.0 | 40.9 |
Advisory | 2.7 | - | (0.1) | (1.1) | (1.2) | (59.3)% | (0.1) | 1.4 |
Total funds | 40.1 | 2.9 | (1.6) | - | 1.3 | 4.3% | 0.9 | 42.3 |
Notes
1 The funds figures are rounded to one decimal place and therefore may not always cast.
2 Annualised.
Income
Third Quarter Ended | Nine Months Ended | ||||||
£m | 30 June 2018 | 30 June 2017 | Change | 30 June 2018 | 30 June 2017 | Change | |
Direct discretionary | 54.9 | 50.1 | 9.6% | 158.5 | 146.8 | 8.0% | |
Intermediaries | 16.5 | 14.2 | 16.2% | 47.6 | 40.4 | 17.8% | |
MPS | 1.9 | 1.4 | 35.7% | 5.4 | 3.7 | 45.9% | |
Total discretionary | 73.3 | 65.7 | 11.6% | 211.5 | 190.9 | 10.8% | |
Financial planning | 5.9 | 5.3 | 11.3% | 18.1 | 14.8 | 22.3% | |
BPS | 0.3 | 0.2 | 50.0% | 0.8 | 0.7 | 14.3% | |
Execution only | 2.7 | 2.7 | 0.0% | 8.1 | 7.8 | 3.8% | |
Core income | 82.2 | 73.9 | 11.2% | 238.5 | 214.2 | 11.3% | |
Advisory investment management | 1.2 | 3.1 | (61.3)% | 5.6 | 10.0 | (44.0)% | |
Interest | 0.8 | 0.3 | n.a | 1.9 | 0.5 | n.a | |
Non-core income | 2.0 | 3.4 | (41.2)% | 7.5 | 10.5 | (28.6)% | |
Total income | 84.2 | 77.3 | 8.9% | 246.0 | 224.7 | 9.5% | |
Fees and Commissions
Third Quarter Ended | Nine Months Ended | ||||||
£m | 30 June 2018 | 30 June 2017 | Change | 30 June 2018 | 30 June 2017 | Change | |
Core fees | 58.3 | 52.8 | 10.4% | 170.8 | 152.7 | 11.9% | |
Core commissions | 18.0 | 15.8 | 13.9% | 49.6 | 46.7 | 6.2% | |
Advisory fees | 0.9 | 2.2 | (59.1)% | 4.1 | 7.0 | (41.4)% | |
Advisory commissions | 0.3 | 0.9 | (66.7)% | 1.5 | 3.0 | (50.0)% | |
Total fees | 59.2 | 55.0 | 7.6% | 174.9 | 159.7 | 9.5% | |
Total commissions | 18.3 | 16.7 | 9.6% | 51.1 | 49.7 | 2.8% | |
Financial planning | 5.9 | 5.3 | 11.3% | 18.1 | 14.8 | 22.3% | |
Other income | 0.8 | 0.3 | n/a | 1.9 | 0.5 | n/a | |
Total income | 84.2 | 77.3 | 8.9% | 246.0 | 224.7 | 9.5% | |
The Company's LEI number is 213800PS7FS5UYOWAC49.
For further information:
Brewin Dolphin Holdings PLC | |
David Nicol, Chief Executive | Tel: +44 (0)20 7248 4400 |
FTI Consulting | |
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.
Our focus on discretionary investment management has led to growth in client funds and we now manage £36.8 billion 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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