Q3 discretionary net flows of £0.7bn, an annualised growth of 6.1%; implementation of our custody and settlement system remains on track

Brewin Dolphin announces a trading update for the three months ended 30 June 2021.

Robin Beer, Chief Executive said:
'We are very pleased to announce a second consecutive quarter of record gross discretionary fund inflows of £1.3bn, of which over 70% were from new clients1. Strong fund inflows were seen across both our direct and indirect businesses, with Ireland having an exceptional quarter and our Voyager fund range continuing to scale at pace. We are in the final stages of implementing our custody and settlement system and remain on track for it to go live in our environment in the Autumn. These results are testimony that we are delivering on our strategic priorities of innovating our propositions, expanding our distribution channels and accelerating our digital agenda, and we are well positioned to capture future growth.'

Q3 financial highlights

  • Record gross discretionary fund inflows of £1.3bn, higher than Q2 level of £1.0bn, driven by continued growth across both our direct and indirect businesses.
    • Over 70% of gross discretionary fund inflows, excluding MPS and Voyager, are from new clients, and the remainder from top ups from existing clients.
    • Ireland contributed to around a quarter of our gross direct inflows, excluding transfers relating to Brexit.
    • Our Voyager funds grew by just over £100m, taking its total funds to around £250m.
  • Discretionary net flows of £0.7bn, an annualised growth rate of 6.1% (Q2 2021: £0.5bn, +4.5%2, Q1 2021: £0.1bn, +1.0%2), continues to demonstrate the value in our advice-focused strategy and broad range of propositions.
  • Total funds increased by 6.5% to £56.0bn in the quarter (Q2 2021: £52.6bn). Discretionary funds were up 6.6% to £48.7bn (Q2 2021: £45.7bn) supported by continued strong net flows and improved investment performance of 5.0% in the quarter (MSCI PIMFA Private Investor Balanced Index: 4.3%).
  • Total income was £103.8m (Q3 2020: £92.7m), an increase of 12.0% year on year, driven by higher market performance and strong fund net flows. Year to date total income was £303.7m, an increase of 13.1% year on year.
    • Total discretionary income increased by 8.3% to £85.7m (Q3 2020: £79.1m). Year to date total discretionary income grew by 11.5% to £255.0m.
    • Discretionary commission income was £16.5m, lower than elevated levels in Q2 as expected.
    • In the quarter, we had a one-off corporate transaction in Ireland which contributed £1.7m of advisory commission income.
    • Financial planning income grew 28.9% to £10.7m (Q3 2020: £8.3m), driven by both investment performance and continued demand for ongoing financial planning advice.

Update on the implementation of our custody and settlement system ('Avaloq')
Avaloq remains on track to go live in the Autumn. We continue to work towards a phased deployment of functionality once Avaloq is live within our technology environment. There is no change to our FY21 capex guidance for Avaloq of c.£24m. As we embed Avaloq into our technology architecture, we will be able to drive cost benefits through improved operational efficiencies, capacity, and capability.

Upcoming events
The preliminary results for the year ending 30 September 2021 will be announced on 24 November 2021.

Click here to view the full trading update document

Notes:
1 Excluding MPS and Voyager
2 Annualised growth rate

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Brewin Dolphin Holdings plc published this content on 23 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 July 2021 06:07:05 UTC.