Both firms reported stalling revenue growth over the three months to July on the back of falling commission income. Brewin also noted a short-term hit due to the switch out of trail paying fund units. This was offset by a rise in discretionary assets across both firms over the same period, which will pay off over the long-term and bring greater visibility of earnings.
We look at the buyers and sellers of both stocks over the four weeks to mid-July, in the run-up to these results. During this period, Brewin saw its share price fall 6.32% to finish on a share price of 300p on 14 July. Charles Stanley's share price was also down 6.3% over the same period, trading at a little over 400p on 11 July.
According to information seen by Wealth Manager, BlackRock was both a buyer and a seller of Brewin's shares over the four-week period. The group vehicle bought 1.4 million shares through its Managed Funds, bringing its total position up to 5.4 million. Over the same period, BlackRock also sold all CFD holdings held through Nigel Ridge's UK Absolute Alpha fund, amounting to some 2.4 million shares.
Artemis and the Miton UK Multi-Cap Income fund, run by AA-rated Gervais Williams, sold out completely over the four-week period, selling stakes equating to 1.5 million and 0.7 million shares respectively.
Citywire AA-rated Audrey Ryan also opted to reduce her Kames Ethical Equity fund's position after selling 0.05 million shares, bring the fund’s total position down to 2.7 million. Kames UK Equity fund, run by Stephen Adams and Peter Shaw, also sold 0.4 million shares over the period, equating to a position worth 0.08 million shares by mid-July
Fidelity took a different tack during the month, buying just shy of 2 million shares, bringing the total position up to 14.7 million shares.
Spotlight on Charles Stanley
BlackRock UK Smaller Companies manager Ralph Cox sold down his stake in Charles Stanley over a similar period, selling 0.2 million shares, which brought the total position down to 0.43 million shares. BlackRock Managed funds also sold 0.03 million shares in the company, bringing their total stake down to 1.42 million.
The view was not shared by Aberforth, which bought an additional 0.1 million shares to bring its managed funds’ total stake up to 1.1 million.