Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Artemis' John Dodd salutes Brewin’s ‘excellent management team’

Artemis' John Dodd salutes Brewin’s ‘excellent management team’

John Dodd, a co-founder of Artemis, has welcomed the contribution Brewin Dolphin has made to the £170 million fund he runs.

Brewin Dolphin is the fifth-largest holding in the Artemis Alpha Trust that Dodd (pictured) manages with Adrian Paterson, and over the past year shares in the wealth manager have surged by 29.5%.

‘Its profit margins have risen rapidly under the guidance of an excellent management team installed 18 months ago,’ said Dodd and Paterson.

‘Rigorous attention to costs and streamlining of the business has enabled the company to attain similar financial performance to that of its main competitors and now the focus is on how to drive revenues forward.

'By forcing many of the industry’s smaller players out of the market, the increased costs of regulation should benefit the more established companies in this sector. Brewin Dolphin should be in an excellent position to grow its assets under management in the years ahead.’

Brewin Dolphin was the third-greatest contributor to the trust’s performance in the year ended 30 April 2014, when Artemis Alpha returned 13.3% on a net asset value basis compared with the FTSE All Share index’s 10.5%.

Since 1 June 2003, when Artemis was appointed as its investment manager, the trust has generated 422% on a net asset value basis versus the index’s 168%.

Dodd and Paterson also highlighted two asset managers as principal drivers of their outperformance over the past year: Polar Capital and Liontrust.

‘Both companies are benefiting from rising equity markets and strong flows into their funds,’ they said.

‘These businesses have worked hard over the last couple of years to diversify their product offerings and to attract high calibre individuals, for whom the opportunity to own a stake in a successful, growing business is appealing. Furthermore, both are benefiting from the high levels of operational gearing, with margins increasing as assets under management grow.’

Elsewhere in the financials sector, Dodd and Paterson noted a new investment in peer-to-peer lending specialist GLI Finance.

‘As a consequence of the reluctance of the major banks to lend to individuals and small businesses, peer-to-peer lending is one of the fastest growing areas in the UK economy,’ said Dodd and Paterson.

‘A number of platforms have been set up to match borrowers with lenders, ensuring that high quality borrowers can access loans at an appropriate interest rate. This industry appears to be a win-win for both borrowers and lenders alike.

‘It has strong government support, and although some of the bigger peer-to-peer businesses might float over the next 18 months, GLI Finance is the only quoted company in the UK that gives investors access to this exciting growth area.’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Related Fund Managers

John Dodd
John Dodd
16/20 in Equity - Energy (Performance over 3 years) Average Total Return: -37.17%
Adrian Paterson
Adrian Paterson
Citywire TV
Play HSBC's Stephen King warns of 'enormous' Brexit deficit danger

HSBC's Stephen King warns of 'enormous' Brexit deficit danger

Brexit will weaken the economy, fail to boost exports and lessen the country's ability to fund its 'enormous' deficit, according to HSBC's senior economic adviser Stephen King.

Play Premier's Smith: electricity and water can be a good mix

Premier's Smith: electricity and water can be a good mix

Exposing your person to electricity and water simultaneously is ill-advised, but what about your portfolio?

Play Citywire 10k: video highlights

Citywire 10k: video highlights

Citywire held its sixth annual charity run last week, which hosted over 200 people and raised £14,000. Here are the video highlights.

Your Business: Cover Star Club

Profile: how to control your destiny in an age of regulation

Profile: how to control your destiny in an age of regulation

‘RDR was good news to us because it aligned our practices with the industry,’ says Courtiers boss Jamie Shepperd

Wealth Manager on Twitter