TIDMBRW

RNS Number : 9799M

Brewin Dolphin Holdings PLC

27 January 2021

27 January 2021

Brewin Dolphin Holdings PLC

("Brewin Dolphin" or the "Company" or the "Group")

Quarterly Trading Update

For the first quarter ended 31 December 2020

Total funds grew to GBP51.4bn, higher than pre-COVID levels, driving strong income growth of 7% in the quarter

Brewin Dolphin announces a trading update for the three months ended 31 December 2020.

Q1 2021 Highlights

-- Total funds increased by 8.0% to a record GBP51.4bn (FY 2020: GBP47.6bn) in the quarter, with total discretionary funds up 8.3% to GBP44.6bn (FY 2020: GBP41.2bn), supported by strong investment performance.

-- Positive Q1 total discretionary net flows of GBP0.1bn (annualised growth rate of 1.0%), with gross inflows of GBP0.6bn, higher levels than Q4 2020 and similar levels to Q1 2020.

o MPS funds grew to GBP4.9bn (FY 2020: GBP4.4bn) with net flows of GBP0.1bn, an annualised growth rate of 9.1%. Our recently launched Brewin Dolphin Voyager funds are contributing to the momentum.

-- Total quarterly income increased by 7.0% to GBP95.9m (Q1 2020: GBP89.6m(1) ), driven by strong market performance in the quarter and continued high levels of commissions.

o Total discretionary income increased by 5.9% to GBP81.0m (Q1 2020: GBP76.5m) due to growth in funds and higher commission income.

o Financial planning income grew 11.8% to GBP9.5m (Q1 2020: GBP8.5m), driven by demand for our advice-led services and growth in 1762 by Brewin Dolphin.

o MPS income grew 18.5% driven by improved market performance and income from our 'Powered by Brewin Dolphin' solution.

-- We continue to benefit from some cost savings across the business as social distancing continues.

-- Remain on track for the implementation of our custody and settlement system in the Autumn this year, in-line with prior guidance. Delivery of Avaloq's software and the integration with our internal systems is in progress and the acceptance testing and readiness activities are underway.

(1) Q1 2020 only includes 2 months income from our acquisition of Investec Capital & Investment Ireland Limited.

Robin Beer, Chief Executive said:

"We had a strong start to our financial year and saw growth across both our direct and indirect business. We are consistently delivering positive inflows, even with the tightened social distancing restrictions imposed in November and December 2020. 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. We remain on-track with the implementation of our custody and settlement system to be completed in the Autumn this year. 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."

Upcoming events

The half year results for the year ending 31 March 2021 will be announced on 13 May 2021.

Funds

Total funds by service category(1)

 
                                31 December   30 September   31 December 
                                       2019           2020          2020           Change 
-----------------------------  ------------  -------------  ------------ 
                                                                                 Last        Last 
 GBPbn                                                                      12 months    3 months 
-----------------------------  ------------  -------------  ------------  -----------  ---------- 
 Direct discretionary                  27.5           26.7          28.8         4.7%        7.9% 
-----------------------------  ------------  -------------  ------------  -----------  ---------- 
 Intermediaries                        10.2           10.1          10.9         6.9%        7.9% 
 MPS                                    4.1            4.4           4.9        19.5%       11.4% 
-----------------------------  ------------  -------------  ------------  -----------  ---------- 
 Indirect discretionary                14.3           14.5          15.8        10.5%        9.0% 
-----------------------------  ------------  -------------  ------------  -----------  ---------- 
 Total discretionary                   41.8           41.2          44.6         6.7%        8.3% 
-----------------------------  ------------  -------------  ------------  -----------  ---------- 
 Execution only                         4.5            4.1           4.6         2.2%       12.2% 
 BPS                                    0.2            0.2           0.2         0.0%        0.0% 
 Advisory                               2.0            2.1           2.0         0.0%      (4.8)% 
-----------------------------  ------------  -------------  ------------  -----------  ---------- 
 Total funds                           48.5           47.6          51.4         6.0%        8.0% 
-----------------------------  ------------  -------------  ------------  -----------  ---------- 
 Indices 
-----------------------------  ------------  -------------  ------------  -----------  ---------- 
 MSCI PIMFA Private Investor 
  Balanced 
  Index                               1,679          1,568         1,677       (0.1)%        7.0% 
 FTSE 100                             7,542          5,866         6,460      (14.3)%       10.1% 
-----------------------------  ------------  -------------  ------------  -----------  ---------- 
 

Funds flow by service category - detailed movement(1) in the quarter

 
 GBPbn                    30   Inflows   Outflows    Internal      Net   Annualised    Investment          31   Change 
                   September                        transfers    flows       growth   performance    December 
                        2020                                                   rate                      2020 
----------------  ----------  --------  ---------  ----------  -------  -----------  ------------  ----------  ------- 
 Direct 
  discretionary         26.7       0.3      (0.1)       (0.2)      0.0         0.0%           2.1        28.8     7.9% 
----------------  ----------  --------  ---------  ----------  -------  -----------  ------------  ----------  ------- 
 Intermediaries         10.1       0.2      (0.1)       (0.1)      0.0         0.0%           0.8        10.9     7.9% 
 MPS                     4.4       0.1        0.0         0.0      0.1         9.1%           0.4         4.9    11.4% 
----------------  ----------  --------  ---------  ----------  -------  -----------  ------------  ----------  ------- 
 Indirect 
  discretionary         14.5       0.3      (0.1)       (0.1)      0.1         2.8%           1.2        15.8     9.0% 
----------------  ----------  --------  ---------  ----------  -------  -----------  ------------  ----------  ------- 
 Total 
  discretionary         41.2       0.6      (0.2)       (0.3)      0.1         1.0%           3.3        44.6     8.3% 
----------------  ----------  --------  ---------  ----------  -------  -----------  ------------  ----------  ------- 
 Execution 
  only                   4.1       0.0      (0.1)      0.4(2)      0.3        29.3%           0.2         4.6    12.2% 
 BPS                     0.2       0.0        0.0         0.0      0.0         0.0%           0.0         0.2     0.0% 
 Advisory                2.1       0.0        0.0       (0.1)    (0.1)      (19.0)%           0.0         2.0   (4.8)% 
                  ----------  --------  ---------  ----------  -------  ----------- 
 Total funds            47.6       0.6      (0.3)         0.0      0.3         2.5%           3.5        51.4     8.0% 
----------------  ----------  --------  ---------  ----------  -------  -----------  ------------  ----------  ------- 
 

(1) The funds figures are rounded to one decimal place and therefore may not always cast.

(2) Internal transfers for execution only, include discretionary funds pending exits.

Income

 
 GBPm                              Q1 ended                    Q1 ended                      Change 
                                31 December 2020            31 December 2019 
                           Fees   Commission   Total   Fees   Commission   Total    Fees   Commission   Total 
------------------------  -----  -----------  ------  -----  -----------  ------  ------  -----------  ------ 
 Direct discretionary      43.8         15.9    59.7   42.0         13.9    55.9    4.3%        14.4%    6.8% 
------------------------  -----  -----------  ------  -----  -----------  ------  ------  -----------  ------ 
 Intermediaries            17.9          0.2    18.1   17.6          0.3    17.9    1.7%      (33.3)%    1.1% 
 MPS(1)                     3.2          n/a     3.2    2.7          n/a     2.7   18.5%          n/a   18.5% 
------------------------  -----  -----------  ------  -----  -----------  ------  ------  -----------  ------ 
 Indirect discretionary    21.1          0.2    21.3   20.3          0.3    20.6    3.9%      (33.3)%    3.4% 
------------------------  -----  -----------  ------  -----  -----------  ------  ------  -----------  ------ 
 Total discretionary       64.9         16.1    81.0   62.3         14.2    76.5    4.2%        13.4%    5.9% 
------------------------  -----  -----------  ------  -----  -----------  ------  ------  -----------  ------ 
 Financial planning         n/a          n/a     9.5    n/a          n/a     8.5     n/a          n/a   11.8% 
 Execution only             1.2          1.7     2.9    1.1          1.6     2.7    9.1%         6.3%    7.4% 
 BPS                        0.4          n/a     0.4    0.3          n/a     0.3   33.3%          n/a   33.3% 
 Advisory                   1.1          0.3     1.4    0.9          0.2     1.1   22.2%        50.0%   27.3% 
 Other income               n/a          n/a     0.7    n/a          n/a     0.5     n/a          n/a   40.0% 
------------------------  -----  -----------  ------  -----  -----------  ------  ------  -----------  ------ 
 Total income              67.6         18.1    95.9   64.6         16.0    89.6    4.6%        13.1%    7.0% 
------------------------  -----  -----------  ------  -----  -----------  ------  ------  -----------  ------ 
 

(1) 'Powered by Brewin Dolphin' income in Q1 2021 is GBP0.1m (Q1 2020: GBPnil); funds are not included within the reported Group funds.

The Company's LEI number is 213800PS7FS5UYOWAC49

For further information:

 
Brewin Dolphin Holdings PLC 
Carla Bloom, Head of Investor Relations  Tel:+44 (0) 20 7248 4400 
 
Camarco 
Ben Woodford / Geoffrey Pelham-Lane      Tel: +44 (0) 799 065 3341 
                                          / 
                                          +44 (0) 773 312 4226 
 

Notes to Editors:

About Brewin Dolphin

Brewin Dolphin is one of the UK and Ireland's leading independent providers of discretionary wealth management. We continue to focus on discretionary investment management, and we manage GBP44.6 billion of funds 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.

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