Adviser business helped boost Brewin Dolphin’s net discretionary inflows to £1.3 billion for the six months to 31 March 2018 however market ‘challenges’ have hit its total assets under administration.
In a six month trading update, the DFM said it has seen ‘strong net flows into our intermediaries services’ which includes both its managed portfolio service (MPS) and its bespoke discretionary service.
Net inflows into its MPS and bespoke service for IFAs combined to reach £900 million with its bespoke discretionary service up 50% compared to the same period last year.
The DFM said it had seen increased demand for its bespoke discretionary service from IFAs on the back of advice around pension freedoms which has led to an increase of 22% into its average new case size.
However despite the rise in IFA flows, overall assets under management at the DFM of £39.7 billion were down slightly from the start of 2018 when assets stood at £40.1 billion.
David Nicol, Brewin Dolphin’s chief executive, suggested this fall in assets was the result of lower market returns in 2018.
‘I am pleased to report a robust first half of our financial year with strong net discretionary inflows, despite challenges in the wider market,’ Nicol said.
‘We continue to deliver against our strategy and build on the positive momentum across the business. We remain positive in our outlook and confident in the strength and increasing relevance of our advice-led service.’
Overall pre-tax profits at the DFM were up 19.8% at £38.8 million.
Brewin Dolphin recently set up a new financial planning academy and the DFM said 12 new entrants will join this in the second half of the year.