Brewin Dolphin's 2Q funds drop £7.1bn as covid-19 bites

UK wealth manager Brewin Dolphin has said it has seen £7.1bn wiped off its total funds under management in the second quarter of its financial year.

The London-based wealth manager recorded positive net flows of £0.4bn over three months to 31 March 2020, but still recorded a loss of 14.6% on total funds under management (FUM) as investment performance took a £7.5bn hit to bring total FUM to £41.4bn.

However, over the past six months the firm has only recorded positive net flows of £0.6bn, meaning despite the pandemic and its impact on the markets, it has received the majority of its inflows since January.

Not surprisingly, the rapid spread of covid-19 and the unprecedented reaction of the global markets, has negatively impacted the value of our clients' funds and consequently our second quarter total income."

Total income has increased by 8.3% year-on-year, growing £13.3m to £175.8m, of which £9.3m were as a result of recent acquisitions.

In a statement the company said: "Not surprisingly, the rapid spread of covid-19 and the unprecedented reaction of the global markets, has negatively impacted the value of our clients' funds and consequently our second quarter total income."

David Nicol, Brewin Dolphin's chief executive (pictured), said: "We were encouraged by our good performance in the first quarter with improving markets and positive discretionary net inflows, which strongly accelerated into the second quarter."

He continued, "Not surprisingly, the rapid spread of covid-19 and the unprecedented reaction of the global markets, has negatively impacted the value of our clients' funds and consequently our second quarter total income. We have a strong balance sheet with good cash generation, and a robust regulatory capital position, which will support us as markets recover and enable us to service the growing demand for financial advice in the UK and Ireland. We currently have no intention of participating in any Government schemes.

Nicol added: "We have prioritised the health and wellbeing of our employees by ensuring almost all are working from home and have implemented several internal initiatives to help balance caring for family and working remotely."

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