Brewin Dolphin has reported an increase in the demand for financial advice over the past few months as the coronavirus crisis continues to rock markets and cause financial uncertainty for many consumers.
The discretionary fund manager and financial adviser saw net inflows of £400m in the three months to March which represented an annualised growth rate of 3.8 per cent, according to its results published today (April 17).
But it also reported a drop in assets under management of 14.6 per cent — from £48.5bn to £41.4bn — following £7.5bn of negative market movements.
David Nicol, chief executive at Brewin Dolphin, said: “In these volatile markets, it has never been more important to stay connected with our clients, and we continue to see increased demand for client engagement and financial advice, which we have been able to offer remotely through video, telephone and conference calls.
“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.”
Mr Nicol, who is set to retire after eight years at the firm in June, said the company had no plans to participate in any government-backed business schemes.
Brewin Dolphin also reported its results for the six months to March, which showed £600m of net inflows and assets slipping by £4.6bn over the half-year period.
From October to March, Brewin Dolphin saw £500m piled into its discretionary fund management service while its model portfolio service saw £400m of net inflows.
Total income increased 8.3 per cent year-on-year to £175.8m, which included £9.3m as a result of its recent acquisition of Investec Wealth’s Irish arm.
Looking forward, the DFM said recent market weakness had created a high level of uncertainty as to the outlook for the remainder of the financial year, adding it was “still too early” to ascertain the impact coronavirus could have on its full year 2020 income and profitability.
It added: “We continue to be fully engaged with our clients and are confident in our ability to respond to the increased demand for financial advice at this time of uncertainty, while supporting our employees and suppliers and continuing to deliver our strategic objectives.”
imogen.tew@ft.com
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