Brewin Dolphin AuM slide despite net inflows
Companies and economies around the world continued to feel the effects of the coronavirus-enforced lockdowns during the first half of 2020, but stockmarkets began to rally as cases began to roll over.
Brewin Dolphin, the UK-based asset manager, saw its AuM slip to £41.4bn, from £45bn, in the six months to 31 March 2020, due mainly to market movements and despite net inflows of £500m, according to its results for the six months to 31 March 2020, published this morning.
The firm said it would maintain its interim dividend at 4.4p per share, but warned its final payout would likely be at the lower end of its 60% to 80% of annual adjusted diluted earnings-per-share payout ratio.
Brewin Dolphin said its total discretionary inflows of £500m represented an annualised growth rate of 2.5%, with discretionary funds reducing by around £5bn to £35.7bndue to negative market performance.
Meanwhile, its total AuM excluding from acquisitions - which added £2.7bn - decreased by 14%.
The firm made an adjusted profit of £36.5m, an increase of 3%, while it retains net cash of £144m on its balance sheet and a capital adequacy ratio of 204%.
CEO David Nicol (pictured) said the results were "resilient", "notwithstanding the negative impact of Covid-19 on global markets towards the end of the second quarter".
Nicol continued: "We saw a greater level of direct inflows in the first half, with strong demand for integrated wealth management service.
"We have a strong balance sheet and good cash generation although we need to be mindful of the high level of uncertainty for the remainder of the financial year. We continue to monitor the impacts on the business and maintain strong cost discipline."
Elsewhere, Nicol said Brewin Dolphin had "successfully integrated the people and assets of our Irish business and launched new technology to enhance the user-experience for WealthPilot".
"We are making significant progress on both Client Engage and the custody and settlement system, which we are confident will be delivered in the second half of the year, supporting our growth ambitions and enabling greater efficiencies."
Subscribe to International Investment's free, twice-daily, newsletter
by Logan at http://www.ifacareers.today
Logan van Niekerk
Financial professionals are busy people. Our clients work in what is probably the best paying industry in the world...where time literally is money. For me it is not enough to match a qualified candidate with a good IFA firm – we match the right candidate with the right company. Our years of personal offshore experience in various countries allows us to get to know our candidates and our clients in depth. The demand for qualified financial advisors is increasing all the time and given the ongoing restrictions, over regulation and other factors impacting on the earning potential in certain countries, including the UK, advisors are starting to seriously look at what is available in the international market place. We have built our success and reputation on providing clients and candidates with the very best personalised, responsive and reliable service in the offshore industry. So, when things go wrong, don't go wrong with them...because the successful warrior is the average man, but with laser focus. Contact our offshore IFA recruitment specialists today.
