BRW.L Share News (BRW)

LONDON (Alliance News) - Brewin Dolphin Holdings PLC said Wednesday its first quarter was characterised by "lower market levels" as the investment management company reported a drop in funds managed.

FTSE 250-listed Brewin Dolphin reported a 7.7% decrease in total funds in the first quarter, falling to GBP39.5 billion at December 31 from GBP42.8 billion at September 30.

Within this, the fund manager's discretionary funds decreased 7.2% in the same period to GBP34.9 billion from GBP37.6 billion. Brewin Dolphin attributed both decreases to "lower market levels".

Brewin Dolphin's investment performance shed GBP3.8 billion from its total funds with GBP3.2 billion being lost from its discretionary funds.

Brewin Dolphin noted the MSCI Private Investor Balanced Index fell by 7.9% and the FTSE 100 Index fell by 10% in the quarter.

The investment company's net flows for the period were GBP400 million, a 3.7% year-on-year increase, boosted by GBP500 million net flows in its discretionary funds, representing 5.3% growth.

"The first quarter has been characterised by lower market levels and ongoing macro-economic uncertainty. Against this backdrop, net discretionary inflows have remained strong and ahead of our 5% target, albeit intermediary client activity has slowed whilst intermediaries and their clients assess the current environment," said Chief Executive David Nicol.

Brewin Dolphin's total income decreased 1.6% in the first quarter from a year ago to GBP77.7 million versus GBP79.0 million. The decrease was driven by the fall in 1.2% fall in income from its discretionary funds to GBP66.5 million from GBP67.3 million.

Nicol added: "Challenging market conditions reinforce the value Brewin Dolphin offers clients and we remain confident in our business model, strategy and long-term growth prospects. We will continue to invest selectively to build the business and retain a disciplined focus on operating expenses."

Shares in Brewin Dolphin were down 3.5% Wednesday at 303.60 pence each.