Brewin Dolphin Hldgs - Quarterly Trading Update

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.

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.

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.

MPS net flows were £0.2bn, an annualised growth rate of 26.7%.

Intermediaries net flows were £0.1bn.

·   Total income was £77.7m (Q1 2018: £79.0m), a decrease of 1.6%.

Core income1 of £75.6m (Q1 2018: £76.2m) fell by 0.8%.

Total discretionary income was £66.5m (Q1 2018: £67.3m), a decrease of 1.2%.

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
12 months

Last
3 months

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.