(Alliance News) - Brewin Dolphin Holdings PLC on Wednesday reported a rise in annual funds but reduced its payout to shareholders.
The fund manager's total funds ended September at GBP47.6 billion, up from GBP45.0 billion at the same point a year before.
Brewin noted that, excluding the GBP2.7 billion added from the acquisition of Investec Capital & Investments, the wealth management business of Investec Group in Ireland, its funds were broadly flat. Total net inflows were GBP1.1 billion, but negative investment performance shaved GBP1.2 billion off total funds.
Brewin's Direct discretionary funds rose to GBP26.7 billion from GBP26.3 billion, while indirect discretionary funds grew to GBP14.5 billion from GBP13.8 billion. As a result, total discretionary funds rose to GBP41.2 billion from GBP40.1 billion.
Execution only funds grew to GBP4.1 billion from GBP3.9 billion. And, finally, Advisory funds rose to GBP2.1 billion from GBP800 million.
The wealth manager declared a final dividend of 9.9 pence, giving it a total dividend of 14.3p, down 13% from 16.4p the year before.
"Our objective is to help people build financially sustainable futures whilst achieving peace of mind. This could not have been more welcomed by our clients in a year which saw markets fall during the initial peak of the COVID-19 pandemic. Whilst markets have recovered from those levels, continued volatility remains a likelihood until the pandemic is under control. What is evident is that we could not have achieved our success this year without our values-based decision making and our client-centric culture. Adapting quickly to remote working enabled us to continue to deliver against our strategic objectives and delivered a set of resilient results," Chief Executive Robin Beer said.
Looking ahead, Brewin said market conditions remain "challenging".
"However, we are well placed to capture the momentum once markets rebound, as clients rely on us for our valued advice services," it added.
Brewin expects financial 2021 operating costs to grow by mid-single digits from GBP281.5 million in financial 2020.
"Our sector continues to have structural growth dynamics and we intend to benefit from these by enhancing our distribution capability both through our direct and indirect channels. These priorities will enable us to maintain relevance through both our propositions and user experience, become more efficient through improved processes and ensure we are well placed to capture growth opportunities in challenging markets," Beer added.
Separately, Brewin promoted Charles Ferry to the board as an executive director. Ferry joined Brewin in 2008 as a divisional director, became co-head of Private Clients in 2016 and managing director of Private Clients in 2017. In 2020, he was appointed managing director of Wealth & Investment and in this role he is responsible for Wealth and Investment services across Brewin, which includes all offices within the group, the intermediaries business and the marketing and research departments.
Shares in Brewin Dolphin were down 3.9% in London on Wednesday at 281.24 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
