Brewin Dolphin hails strong organic fund inflows of £1.9bn in half year results

Brewin Dolphin hails strong organic fund inflows of £1.9bn in half year results

Wealth manager Brewin Dolphin, which has offices in Edinburgh, Glasgow, Aberdeen and Dundee, has posted its half year results revealing strong organic fund inflows of £1.9 billion.

The fund, which is set to be acquired by RBC Wealth Management Holdings, said the gross discretionary inflows of just under £2bn show continued organic growth driven by its advice-focused strategy and broad range of propositions and investment solutions.

The £1.9bn inflow compares to the £1.6bn reported for the first half of 2021.

Brewin Dolphin also announced total discretionary net flows of £1.0bn, signifying an annualised growth rate of 4.0%.

Total funds for the first half were broadly flat at £56.3bn (FY 2021: £56.9bn) due to volatile market performance driven by the conflict in Ukraine and the macroeconomic environment. Total discretionary funds were broadly flat in the first half and up 8.1% year-on-year at £49.4bn (FY 2021: £49.8bn; H1 2021: £45.7bn).

At the same time, total income increased by 4.8% year-on-year to £209.5m (H1 2021: £199.9m), driven by higher fund levels year-on-year partly offset by normalised levels of commission, as expected.

However, financial planning income grew 24.6% year-on-year to £23.8m (H1 2021: £19.1m); driven by higher fund levels year-on-year and continued demand for our advice-focused services.

Direct discretionary commission income was down 15.4% year-on-year at £32.3m (H1 2021: £38.2m), as expected.

Brewin Dolphin also revealed that adjusted profit before tax increased 2.3% to £48.1m, compared to £47.0m in the first half of 2021. While a strong cash balance of £139.8m (H1 2021: £145.8m) was reported along with a capital adequacy ratio of 210%.

Robin Beer, CEO, said: “We continued to see strong inflows across both our direct and indirect discretionary funds throughout the first half, with a record first quarter performance despite the volatility in the markets driven by macroeconomic and geopolitical challenges. The resilience in our organic growth, demonstrates our strategy of being an advice-focused wealth manager, supported by our broad range of propositions and investment solutions, is the right one. The business is preparing for the final stage of dress rehearsals and training on our new custody and settlement system and the switch over of systems will be completed at the end of the summer this year.

“We believe that the proposed acquisition by RBC will bring new and exciting opportunities for our clients and people. Whilst the transaction is still to complete, we remain focused on delivering our strategic priorities for the year, which will enable us to become a leading advice- focused digitally enabled wealth manager.”

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