Brewin Dolphin AuM slide despite net inflows
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.
We saw a greater level of direct inflows in the first half, with strong demand for integrated wealth management service."
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."
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