27th Jan 2021 07:00
27 January 2021
Brewin Dolphin Holdings PLC
("Brewin Dolphin" or the "Company" or the "Group")
Quarterly Trading Update
For the first quarter ended 31 December 2020
Total funds grew to £51.4bn, higher than pre-COVID levels, driving strong income growth of 7% in the quarter
Brewin Dolphin announces a trading update for the three months ended 31 December 2020.
Q1 2021 Highlights
· Total funds increased by 8.0% to a record £51.4bn (FY 2020: £47.6bn) in the quarter, with total discretionary funds up 8.3% to £44.6bn (FY 2020: £41.2bn), supported by strong investment performance.
· Positive Q1 total discretionary net flows of £0.1bn (annualised growth rate of 1.0%), with gross inflows of £0.6bn, higher levels than Q4 2020 and similar levels to Q1 2020.
o MPS funds grew to £4.9bn (FY 2020: £4.4bn) with net flows of £0.1bn, an annualised growth rate of 9.1%. Our recently launched Brewin Dolphin Voyager funds are contributing to the momentum.
· Total quarterly income increased by 7.0% to £95.9m (Q1 2020: £89.6m1), driven by strong market performance in the quarter and continued high levels of commissions.
o Total discretionary income increased by 5.9% to £81.0m (Q1 2020: £76.5m) due to growth in funds and higher commission income.
o Financial planning income grew 11.8% to £9.5m (Q1 2020: £8.5m), driven by demand for our advice-led services and growth in 1762 by Brewin Dolphin.
o MPS income grew 18.5% driven by improved market performance and income from our 'Powered by Brewin Dolphin' solution.
· We continue to benefit from some cost savings across the business as social distancing continues.
· Remain on track for the implementation of our custody and settlement system in the Autumn this year, in-line with prior guidance. Delivery of Avaloq's software and the integration with our internal systems is in progress and the acceptance testing and readiness activities are underway.
1 Q1 2020 only includes 2 months income from our acquisition of Investec Capital & Investment Ireland Limited.
Robin Beer, Chief Executive said:
"We had a strong start to our financial year and saw growth across both our direct and indirect business. We are consistently delivering positive inflows, even with the tightened social distancing restrictions imposed in November and December 2020. Broadening our distribution channels continues to add value, with momentum across both our 'Powered by Brewin Dolphin' solution and our recently launched Brewin Dolphin Voyager funds. We remain on-track with the implementation of our custody and settlement system to be completed in the Autumn this year. With a Brexit trade deal behind us and the rollout of vaccinations in the UK, market sentiment is starting to improve, and we look forward to benefiting from this recovery over the coming year."
Upcoming events
The half year results for the year ending 31 March 2021 will be announced on 13 May 2021.
Funds
Total funds by service category1
£bn | 31 December 2019 | 30 September 2020 | 31 December 2020 | Change | |
Last12 months | Last3 months | ||||
Direct discretionary | 27.5 | 26.7 | 28.8 | 4.7% | 7.9% |
Intermediaries | 10.2 | 10.1 | 10.9 | 6.9% | 7.9% |
MPS | 4.1 | 4.4 | 4.9 | 19.5% | 11.4% |
Indirect discretionary | 14.3 | 14.5 | 15.8 | 10.5% | 9.0% |
Total discretionary | 41.8 | 41.2 | 44.6 | 6.7% | 8.3% |
Execution only | 4.5 | 4.1 | 4.6 | 2.2% | 12.2% |
BPS | 0.2 | 0.2 | 0.2 | 0.0% | 0.0% |
Advisory | 2.0 | 2.1 | 2.0 | 0.0% | (4.8)% |
Total funds | 48.5 | 47.6 | 51.4 | 6.0% | 8.0% |
Indices |
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MSCI PIMFA Private Investor Balanced Index | 1,679 | 1,568 | 1,677 | (0.1)% | 7.0% |
FTSE 100 | 7,542 | 5,866 | 6,460 | (14.3)% | 10.1% |
Funds flow by service category - detailed movement1 in the quarter
£bn | 30 September 2020 | Inflows | Outflows | Internal transfers | Net flows | Annualised growth rate | Investment performance | 31 December 2020 | Change |
Direct discretionary | 26.7 | 0.3 | (0.1) | (0.2) | 0.0 | 0.0% | 2.1 | 28.8 | 7.9% |
Intermediaries | 10.1 | 0.2 | (0.1) | (0.1) | 0.0 | 0.0% | 0.8 | 10.9 | 7.9% |
MPS | 4.4 | 0.1 | 0.0 | 0.0 | 0.1 | 9.1% | 0.4 | 4.9 | 11.4% |
Indirect discretionary | 14.5 | 0.3 | (0.1) | (0.1) | 0.1 | 2.8% | 1.2 | 15.8 | 9.0% |
Total discretionary | 41.2 | 0.6 | (0.2) | (0.3) | 0.1 | 1.0% | 3.3 | 44.6 | 8.3% |
Execution only | 4.1 | 0.0 | (0.1) | 0.4² | 0.3 | 29.3% | 0.2 | 4.6 | 12.2% |
BPS | 0.2 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0% | 0.0 | 0.2 | 0.0% |
Advisory | 2.1 | 0.0 | 0.0 | (0.1) | (0.1) | (19.0)% | 0.0 | 2.0 | (4.8)% |
Total funds | 47.6 | 0.6 | (0.3) | 0.0 | 0.3 | 2.5% | 3.5 | 51.4 | 8.0% |
1 The funds figures are rounded to one decimal place and therefore may not always cast.
2 Internal transfers for execution only, include discretionary funds pending exits.
Income
£m | Q1 ended 31 December 2020 | Q1 ended 31 December 2019 | Change | ||||||
| Fees | Commission | Total | Fees | Commission | Total | Fees | Commission | Total |
Direct discretionary | 43.8 | 15.9 | 59.7 | 42.0 | 13.9 | 55.9 | 4.3% | 14.4% | 6.8% |
Intermediaries | 17.9 | 0.2 | 18.1 | 17.6 | 0.3 | 17.9 | 1.7% | (33.3)% | 1.1% |
MPS¹ | 3.2 | n/a | 3.2 | 2.7 | n/a | 2.7 | 18.5% | n/a | 18.5% |
Indirect discretionary | 21.1 | 0.2 | 21.3 | 20.3 | 0.3 | 20.6 | 3.9% | (33.3)% | 3.4% |
Total discretionary | 64.9 | 16.1 | 81.0 | 62.3 | 14.2 | 76.5 | 4.2% | 13.4% | 5.9% |
Financial planning | n/a | n/a | 9.5 | n/a | n/a | 8.5 | n/a | n/a | 11.8% |
Execution only | 1.2 | 1.7 | 2.9 | 1.1 | 1.6 | 2.7 | 9.1% | 6.3% | 7.4% |
BPS | 0.4 | n/a | 0.4 | 0.3 | n/a | 0.3 | 33.3% | n/a | 33.3% |
Advisory | 1.1 | 0.3 | 1.4 | 0.9 | 0.2 | 1.1 | 22.2% | 50.0% | 27.3% |
Other income | n/a | n/a | 0.7 | n/a | n/a | 0.5 | n/a | n/a | 40.0% |
Total income | 67.6 | 18.1 | 95.9 | 64.6 | 16.0 | 89.6 | 4.6% | 13.1% | 7.0% |
1 'Powered by Brewin Dolphin' income in Q1 2021 is £0.1m (Q1 2020: £nil); funds are not included within the reported Group funds.
The Company's LEI number is 213800PS7FS5UYOWAC49
For further information:
Brewin Dolphin Holdings PLC |
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Carla Bloom, Head of Investor Relations | Tel:+44 (0) 20 7248 4400 |
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Camarco |
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Ben Woodford / Geoffrey Pelham-Lane | Tel: +44 (0) 799 065 3341 / +44 (0) 773 312 4226 |
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 £44.6 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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