BREWIN DOLPHIN 25 January 2018
Brewin Dolphin Holdings PLC
('Brewin Dolphin' or the 'Company' or the 'Group')
Quarterly Trading Update
For the quarter ended 31 December 2017
Brewin Dolphin announces a quarterly trading update for the first quarter of the financial year ending 30 September 2018.
Q1 Highlights
· Total funds increased 3.5% to £41.5bn (FY 2017: £40.1bn).
· Core1 funds increased 4.8% to £39.2bn (FY2017: £37.4bn).
· Discretionary funds increased by 4.4% to £35.3bn (FY 2017: £33.8bn) as a result of continued strong organic inflows and positive investment returns.
· Net discretionary funds inflows, including transfers, of £0.7bn representing an annualised growth rate of 8.3% (Q1 2017: 6.9%).
· Total income of £79.0m (Q1 2017: £71.3m), an increase of 10.8%.
· Core2 income of £76.2m up 12.2% on Q1 2017 (£67.9m) driven by strong year on year growth in core funds and financial planning income (up 33.3% to £6.0m).
· Total fee income growth of 15.0% to £59.2m (Q1 2017: £51.5m).
· Total commission income of £13.6m (Q1 2017: £15.2m), a decline of 10.5% in line with recent trends.
1 Core funds comprise discretionary funds, Brewin Portfolio Service ('BPS') and execution only funds.
2 Core income is defined as income derived from discretionary investment management, financial planning, Brewin Portfolio Service
('BPS') and execution only services.
David Nicol, Chief Executive said:
'The business has continued to perform well in the first quarter, maintaining the positive momentum we saw at the end of our 2017 financial year. Growth in total funds was achieved from continued strong inflows into our core services and positive investment returns for our clients. This has led to good overall income growth with the particularly strong growth in fee income more than offsetting the decline in commission income. The business remains focused on delivery of our strategic initiatives and we believe that our positive momentum will continue into the second quarter.'
Funds
Total funds by service category1 | Change | ||||
£bn | 31 December 2016 |
30 September | 31 December 2017 |
Last |
Last |
Direct discretionary | 21.6 | 23.4 | 24.2 | 12.0% | 3.4% |
Intermediaries | 6.8 | 8.1 | 8.6 | 26.5% | 6.2% |
MPS | 1.6 | 2.3 | 2.5 | 56.3% | 8.7% |
Total discretionary | 30.0 | 33.8 | 35.3 | 17.7% | 4.4% |
BPS | 0.1 | 0.1 | 0.2 | 100.0% | 100.0% |
Execution only | 3.4 | 3.5 | 3.7 | 8.8% | 5.7% |
Core funds | 33.5 | 37.4 | 39.2 | 17.0% | 4.8% |
Advisory | 2.9 | 2.7 | 2.3 | (20.7%) | (14.8%) |
Total funds | 36.4 | 40.1 | 41.5 | 14.0% | 3.5% |
Indices | |||||
MSCI WMA Private Investor Balanced Index | 1,492 | 1,545 | 1,599 | 7.2% | 3.5% |
FTSE 100 | 7,143 | 7,373 | 7,688 | 7.6% | 4.3% |
Funds flow by service category - detailed movement1 in the quarter
£bn |
30 September | Inflows | Outflows | Internal transfers | Net flows | Growth rate* | Investment performance | 31 December 2017 |
Direct discretionary | 23.4 | 0.2 | (0.2) | 0.2 | 0.2 | 3.4% | 0.6 | 24.2 |
Intermediaries | 8.1 | 0.4 | - | (0.1) | 0.3 | 14.8% | 0.2 | 8.6 |
MPS | 2.3 | 0.2 | - | - | 0.2 | 34.8% | 0.1 | 2.5 |
Total discretionary | 33.8 | 0.8 | (0.2) | 0.1 | 0.7 | 8.3% | 0.9 | 35.3 |
BPS | 0.1 | - | - | - | - | n.a | - | 0.2 |
Execution only | 3.5 | 0.2 | (0.3) | 0.3 | 0.2 | n.a | - | 3.7 |
Core funds | 37.4 | 1.0 | (0.5) | 0.4 | 0.9 | 9.6% | 0.9 | 39.2 |
Advisory | 2.7 | - | - | (0.4) | (0.4) | n.a | - | 2.3 |
Total funds | 40.1 | 1.0 | (0.5) | - | 0.5 | 5.0% | 0.9 | 41.5 |
Notes
1The funds figures are rounded to one decimal place and therefore may not always cast.
Income
£m | Q1 2018 | Q1 2017 | Change |
Direct discretionary | 49.9 | 47.0 | 6.2% |
Intermediaries | 15.7 | 12.7 | 23.6% |
MPS | 1.7 | 1.1 | 54.5% |
Total discretionary | 67.3 | 60.8 | 10.7% |
Financial planning | 6.0 | 4.5 | 33.3% |
BPS | 0.3 | 0.2 | 50.0% |
Execution only | 2.6 | 2.4 | 8.3% |
Core income | 76.2 | 67.9 | 12.2% |
Advisory investment management | 2.6 | 3.3 | (21.2%) |
Interest | 0.2 | 0.1 | n.a |
Non-core income | 2.8 | 3.4 | (17.6%) |
Total income | 79.0 | 71.3 | 10.8% |
Fees and Commissions
£m | Q1 2018 | Q1 2017 | Change |
Core fees | 57.3 | 49.1 | 16.7% |
Core commissions | 12.9 | 14.3 | (9.8%) |
Advisory fees | 1.9 | 2.4 | (20.8%) |
Advisory commissions | 0.7 | 0.9 | (22.2%) |
Total fees | 59.2 | 51.5 | 15.0% |
Total commissions | 13.6 | 15.2 | (10.5%) |
Financial planning | 6.0 | 4.5 | 33.3% |
Other income | 0.2 | 0.1 | n/a |
Total income | 79.0 | 71.3 | 10.8% |
The Company's LEI number is 213800PS7FS5UYOWAC49
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 | |
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 discretionary wealth management.
Our focus on discretionary investment management has led to growth in client funds and we now manage £35.3 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.
Brewin Dolphin Holdings plc published this content on 25 January 2018 and is solely responsible for the information contained herein.
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