Strong investment performance drives Brewin Dolphin's first quarter
Brewin Dolphin said on Wednesday that its total funds increased by 8.0% to a record £51.4bn in the quarter ended 31 December, with total discretionary funds up 8.3% to £44.6bn, supported by “strong” investment performance.
The FTSE 250 company said total discretionary net flows in the first quarter came in at £0.1bn, for annualised growth rate of 1.0%, with gross inflows of £0.6bn - higher levels than the fourth quarter of 2020, and similar levels to the first quarter of 2020.
MPS funds grew to £4.9bn from £4.4bn at the end of the 2020 financial year, with net flows of £0.1bn, making for an annualised growth rate of 9.1%.
The company’s recently-launched Brewin Dolphin Voyager funds were contributing to the momentum.
Total quarterly income increased by 7.0% to £95.9m, which the board said was driven by strong market performance in the quarter and continued high levels of commissions.
Total discretionary income increased by 5.9% to £81.0m, due to growth in funds and higher commission income, while financial planning income grew 11.8% to £9.5m, driven by demand for the firm’s advice-led services and growth in ‘1762 by Brewin Dolphin’.
MPS income was ahead 18.5%, driven by improved market performance and income from the company’s 'Powered by Brewin Dolphin' solution.
The board said the company was still benefiting from some cost savings across the business as social distancing continued.
It said it remained on track for the implementation of its custody and settlement system in the autumn, in line with prior guidance.
Delivery of Avaloq's software and the integration with the firm’s internal systems was in progress, with the acceptance testing and readiness activities underway.
“We had a strong start to our financial year and saw growth across both our direct and indirect business,” said chief executive officer Robin Beer.
“We are consistently delivering positive inflows, even with the tightened social distancing restrictions imposed in November and December.
“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.”
Beer said the company remained on track with the implementation of its custody and settlement system to be completed in the autumn.
“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.”
At 0907 GMT, shares in Brewin Dolphin Holdings were up 0.84% at 298.5p.