Share Search
Visit the Share Search
You are here:
Brewin Dolphin second-quarter FuM decline 15%
17th Apr 2020 07:44
(Sharecast News) - Wealth manager Brewin Dolphin posted a drop in second-quarter total funds under management on Friday as it noted that markets have been hit recently due to the Covid-19 outbreak.
Total discretionary new flows were ?0.4bn during the quarter, up from ?0.1bn in the first quarter and representing annualised growth of 3.8%. However, total funds fell 14.6% to ?41.4bn, with discretionary funds down 14.6% to ?35.7bn.
Chief executive David Nicol 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. 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."
The company said it currently has no plans to participate in any Government schemes.
Brewin said that while recent market weakness has created a high level of uncertainty over the outlook for the rest of financial year, it is still too early to ascertain the impact this will have on its 2020 income and profitability.
Total discretionary new flows were ?0.4bn during the quarter, up from ?0.1bn in the first quarter and representing annualised growth of 3.8%. However, total funds fell 14.6% to ?41.4bn, with discretionary funds down 14.6% to ?35.7bn.
Chief executive David Nicol 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. 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."
The company said it currently has no plans to participate in any Government schemes.
Brewin said that while recent market weakness has created a high level of uncertainty over the outlook for the rest of financial year, it is still too early to ascertain the impact this will have on its 2020 income and profitability.