David Nicol, Chief Executive said:
“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. 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.“
Q1 Highlights
· During this quarter the MSCI Private Investor Balanced Index fell by 7.9% and the FTSE 100 Index fell by 10.4%.
· Against this backdrop, total funds reduced by 7.7% to £39.5bn (FY 2018: £42.8bn) and discretionary funds reduced by 7.2% to £34.9bn (FY 2018: £37.6bn) driven by lower market levels.
o Discretionary net flows, including transfers, were £0.5bn (Q1 2018: £0.7bn) in line with the last quarter of FY 2018 representing an annualised growth rate of 5.3%, ahead of our 5% per annum target.
o Direct net flows, including transfers, of £0.2bn continue the positive overall trend seen in FY 2018 and are in line with both Q1 and Q4 2018.
o MPS net flows were £0.2bn, an annualised growth rate of 26.7%.
o Intermediaries net flows were £0.1bn.
· Total income was £77.7m (Q1 2018: £79.0m), a decrease of 1.6%.
o Core income1 of £75.6m (Q1 2018: £76.2m) fell by 0.8%.
o Total discretionary income was £66.5m (Q1 2018: £67.3m), a decrease of 1.2%.
o Financial planning income grew 3.3% to £6.2m (Q1 2018: £6.0m).
Funds
Total funds by service category1
|
£bn |
31 December 2017 |
30 September 2018 |
31 December 2018 |
Change |
|
|
Last |
Last |
||||
|
Direct discretionary |
24.2 |
25.1 |
23.2 |
(4.1)% |
(7.6)% |
|
Intermediaries |
8.6 |
9.5 |
8.8 |
2.3% |
(7.4)% |
|
MPS |
2.5 |
3.0 |
2.9 |
16.0% |
(3.3)% |
|
Indirect discretionary |
11.1 |
12.5 |
11.7 |
5.4% |
(6.4)% |
|
Total discretionary |
35.3 |
37.6 |
34.9 |
(1.1)% |
(7.2)% |
|
BPS |
0.2 |
0.1 |
0.2 |
-% |
-% |
|
Execution only |
3.7 |
3.9 |
3.5 |
(5.4)% |
(10.3)% |
|
Core funds |
39.2 |
41.6 |
38.6 |
(1.5)% |
(7.2)% |
|
Advisory |
2.3 |
1.2 |
0.9 |
(60.9)% |
(25.0)% |
|
Total funds |
41.5 |
42.8 |
39.5 |
(4.8)% |
(7.7)% |
|
Indices |
|
|
|
|
|
|
MSCI WMA Private Investor Balanced Index |
1,599 |
1,612 |
1,484 |
(7.2)% |
(7.9)% |
|
FTSE100 Index |
7,688 |
7,510 |
6,728 |
(12.5)% |
(10.4)% |
Funds flow by service category – detailed movement1 in the quarter
|
£bn |
30 September 2018 |
Inflows |
Outflows |
Internal transfers |
Net flows |
Growth rate* |
Investment performance |
31 December 2018 |
|
Direct discretionary |
25.1 |
0.2 |
(0.1) |
0.1 |
0.2 |
3.2% |
(2.1) |
23.2 |
|
Intermediaries |
9.5 |
0.2 |
(0.1) |
– |
0.1 |
4.2% |
(0.8) |
8.8 |
|
MPS |
3.0 |
0.2 |
– |
– |
0.2 |
26.7% |
(0.3) |
2.9 |
|
Indirect discretionary |
12.5 |
0.4 |
(0.1) |
– |
0.3 |
9.6% |
(1.1) |
11.7 |
|
Total discretionary |
37.6 |
0.6 |
(0.2) |
0.1 |
0.5 |
5.3% |
(3.2) |
34.9 |
|
BPS |
0.1 |
– |
– |
– |
– |
n/a |
– |
0.2 |
|
Execution only |
3.9 |
0.1 |
(0.1) |
0.1 |
0.1 |
10.3% |
(0.5) |
3.5 |
|
Core funds |
41.6 |
0.7 |
(0.3) |
0.2 |
0.6 |
5.8% |
(3.7) |
38.6 |
|
Advisory |
1.2 |
– |
– |
(0.2) |
(0.2) |
n/a |
(0.1) |
0.9 |
|
Total funds |
42.8 |
0.7 |
(0.3) |
– |
0.4 |
3.7% |
(3.8) |
39.5 |
|
* annualised growth rate |
|
|
|
|
|
|
||
Notes
1The funds figures are rounded to one decimal place and therefore may not always cast.
Income
|
£m |
Q1 2019 |
Q1 2018 |
Change |
|
Direct discretionary |
48.6 |
49.9 |
(2.6)% |
|
Intermediaries |
15.9 |
15.7 |
1.3% |
|
MPS |
2.0 |
1.7 |
17.6% |
|
Indirect discretionary |
17.9 |
17.4 |
2.9% |
|
Total discretionary |
66.5 |
67.3 |
(1.2)% |
|
Financial planning |
6.2 |
6.0 |
3.3% |
|
BPS |
0.3 |
0.3 |
-% |
|
Execution only |
2.6 |
2.6 |
-% |
|
Core income |
75.6 |
76.2 |
(0.8)% |
|
Advisory |
0.7 |
2.6 |
(73.1)% |
|
Interest |
1.4 |
0.2 |
600.0% |
|
Total other income |
2.1 |
2.8 |
(25.0)% |
|
Total income |
77.7 |
79.0 |
(1.6)% |
Fees and Commissions
|
|
Q1 2019 |
Q1 2018 |
Change |
||||||
|
£m |
Fees |
Commission |
Total |
Fees |
Commission |
Total |
Fees |
Commission |
Total |
|
Direct discretionary |
36.5 |
12.1 |
48.6 |
38.8 |
11.1 |
49.9 |
(5.9)% |
9.0% |
(2.6)% |
|
Intermediaries |
15.6 |
0.3 |
15.9 |
15.4 |
0.3 |
15.7 |
1.3% |
-% |
1.3% |
|
MPS |
2.0 |
– |
2.0 |
1.7 |
– |
1.7 |
17.6% |
-% |
17.6% |
|
Indirect discretionary |
17.6 |
0.3 |
17.9 |
17.1 |
0.3 |
17.4 |
2.9% |
-% |
2.9% |
|
Total discretionary |
54.1 |
12.4 |
66.5 |
55.9 |
11.4 |
67.3 |
(3.2)% |
8.8% |
(1.2)% |
|
BPS |
0.3 |
– |
0.3 |
0.3 |
– |
0.3 |
-% |
-% |
-% |
|
Execution only |
1.1 |
1.5 |
2.6 |
1.1 |
1.5 |
2.6 |
-% |
-% |
-% |
|
Core income excluding financial planning |
55.5 |
13.9 |
69.4 |
57.3 |
12.9 |
70.2 |
(3.1)% |
7.8% |
(1.1)% |
|
Financial planning |
n/a |
n/a |
6.2 |
n/a |
n/a |
6.0 |
n/a |
n/a |
3.3% |
|
Core income |
n/a |
n/a |
75.6 |
n/a |
n/a |
76.2 |
n/a |
n/a |
(0.8)% |
About Brewin Dolphin
Brewin Dolphin is one of the UK's leading independent providers of discretionary wealth management.
We continue to focus on discretionary investment management and we manage £34.9 billion 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.