27 Jan 2016 07:00
27 January 2016
Brewin Dolphin Holdings PLC
Interim Management Statement
For the quarter ended 31 December 2015
Solid growth in core income and funds despite challenging market conditions
Brewin Dolphin Holdings PLC (the 'Company' or the 'Group') today issues the following Interim Management Statement for the first quarter of the financial year, ending 30 September 2016.
Q1 Highlights1
· | Total funds grew by 3.8% to £33.2bn (Q1 2015: £33.1bn, FY 2015: £32.0bn). |
· | Total core funds2 grew by 4.2% in the quarter to £29.7bn. |
· | The FTSE WMA Private Investor Series Balanced Portfolio index increased by 3.2% in the quarter to 31 December 2015, and the FTSE 100 increased by 3.0% in the same period. |
· | Total net discretionary funds inflow of £0.3bn excluding transfers, representing 4.8% annualised growth. |
· | Record Q1 discretionary funds inflow of £0.6bn driven by ongoing inflows from all channels. |
· | Rate of outflows from discretionary funds stabilising; £0.3bn in the quarter. |
· | Core income growth of 3.1% to £60.6m (Q1 2015: £58.8m) driven by organic fund flow, improved transaction volumes and associated commissions coupled with strong growth in financial planning income; against a backdrop of broadly flat markets over the last 12 months. |
· | Continued decline in other income to £6.6m (Q1 2015: £8.9m), in line with expectations, following refocusing of the business on core services. |
· | Post period end, reorganisation announced, increasing the representation of client-facing leaders on the Executive Committee, to further support delivery of the growth strategy. |
1 Q1 2015 results restated to exclude discontinued operations.
2 Core funds comprise discretionary and execution only funds.
David Nicol, Chief Executive said:
'We have made an encouraging start to the financial year. Continued net organic growth in funds, driven by increasing inflows into our core discretionary service, underlines the quality of the business despite the volatility in financial markets. We remain focused on our clear strategy to grow the business. Turbulent market conditions may persist for some time but our continued progress, strategic focus and financial strength all give us confidence in pursuing our long-term growth agenda.'
Funds
Change | |||||
£bn | 31 December 2014 | 30 September 2015 | 31 December 2015 | Last 12 months | Last 3 months |
Discretionary | 24.8 | 24.8 | 25.9 | 4.4% | 4.4% |
Execution only | 3.5 | 3.7 | 3.8 | 8.6% | 2.7% |
Core funds | 28.3 | 28.5 | 29.7 | 4.9% | 4.2% |
Advisory | 4.8 | 3.5 | 3.5 | -27.1% | 0.0% |
Total funds | 33.1 | 32.0 | 33.2 | 0.3% | 3.8% |
Indices | |||||
FTSE WMA Private Investor Series Balanced Portfolio | 3,537 | 3,421 | 3,531 | -0.2% | 3.2% |
FTSE 100 | 6,566 | 6,062 | 6,242 | -4.9% | 3.0% |
Q1 2016 Funds Movement
| ||||||||
£bn | 30 September 2015 | Inflows | Outflows | Internal transfers | Net flows | Growth rate* | Investment performance | 31 December 2015 |
Discretionary | 24.8 | 0.6 | (0.3) | (0.1) | 0.2 | 3.2% | 0.9 | 25.9 |
Execution only | 3.7 | 0.1 | (0.2) | 0.3 | 0.2 | 21.6% | (0.1) | 3.8 |
Core funds | 28.5 | 0.7 | (0.5) | 0.2 | 0.4 | 5.6% | 0.8 | 29.7 |
Advisory | 3.5 | - | - | (0.2) | (0.2) | -22.9% | 0.2 | 3.5 |
Total funds | 32.0 | 0.7 | (0.5) | - | 0.2 | 2.5% | 1.0 | 33.2 |
* annualised |
Income
Q1 2016 | Q1 2015 | Change | |
Discretionary investment management | 54.2 | 52.9 | 2.5% |
Financial planning | 4.0 | 3.5 | 14.3% |
Execution only | 2.4 | 2.4 | 0.0% |
Core income | 60.6 | 58.8 | 3.1% |
Advisory investment management | 4.8 | 6.8 | -29.4% |
Trail income | 1.0 | 1.1 | -9.1% |
Interest | 0.8 | 1.0 | -20.0% |
Other income | 6.6 | 8.9 | -25.8% |
Total income | 67.2 | 67.7 | -0.7% |
For further information:
Brewin Dolphin Holdings PLC | |
David Nicol, Chief Executive | Tel: +44 (0)20 7248 4400 |
Andrew Westenberger, Finance Director | Tel: +44 (0)20 7248 4400 |
FTI Consulting | |
Paul Marriott | Tel: +44 (0)20 3727 1341 |
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 personalised, discretionary wealth management services. With £33.2 billion in funds, we offer award-winning investment management and financial planning services to approximately 100,000 account holders, including individuals, charities, trusts, pension funds and financial intermediaries.
Brewin Dolphin is dedicated to providing the highest levels of client service, helping our clients plan their finances and manage their investments to achieve their long-term goals. Ranging from bespoke, discretionary investment management to retirement planning and tax-efficient investing, we inspire confidence in our clients enabling them to make the right choices and achieve their individual life ambitions.
Our focus on discretionary investment management has led to significant growth in discretionary client funds and we manage £25.9 billion on a discretionary basis.
We currently have 27 offices throughout the UK, Channel Islands and the Republic of Ireland, with qualified investment managers and financial planners, providing our clients with a personal and tailored wealth management service. 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.
We are proud of our success and have the vision and ambition to grow into the UK's leading provider of discretionary wealth management. In 2015, we won the City of London Wealth Management Awards for Best Discretionary Service Award 2015 and the Portfolio Adviser Gold Award for Best Cautious Portfolio Manager 2015 - Large Firm. We are committed to building on our strong track record and delivering continued value to both our clients and shareholders.