Wealth Manager - Essential news for investment professionals

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Why Kames’ AAA-rated Ryan backs Brewin Dolphin

Why Kames’ AAA-rated Ryan backs Brewin Dolphin

Citywire AAA-rated Audrey Ryan has built up a stake in Brewin Dolphin, which she thinks could be in line for an earnings upgrade.

The wealth manager had a chequered 2013, with £4.8 million of redundancy costs and a board reshuffle that saw David Nicol come in as chief executive.

Ryan (pictured), manager of the top performing £401.7 million Kames Ethical Equity fund, said she had invested in the investment group ahead of the changes, which she believed brought in ‘a redefining of strategy within the business, a much more focused driving of margins’.

‘In 2013, we saw the opportunity to buy more Brewin Dolphin for some of our funds. We got involved in their placing and saw the opportunity for an earnings upgrade to surprise the market,’ she said. ‘We still like it’.

She is also positive on top 10 holding Hargreaves Lansdown, which recently revealed its post-RDR pricing structures.

‘I think the market was a bit worried about the RDR changes and what that meant for many businesses in the financial space, including Hargreaves Lansdown,’ she said. ‘But in terms of what we have heard on pricing from them, we believe it has a strong investment case and we are comfortable with that. The valuation is quite full but that has been the case for some time.’

While the stock has got more expensive, Ryan thinks it will continue to be a market leader.

‘We think it’s there at a growth multiple but they can continue to grow market share. We hear about other players being a bit more cute on pricing but I believe they offer a very strong brand.’

She is broadening out her exposure to stocks set to benefit from the UK recovery.

‘We have been much more positive on developed markets than emerging markets and that has worked very well, specifically in domestic stocks. Media, retail and housebuilders have all in the main performed very well,’ she said.

‘The corporate sector is in pretty good shape in general. As confidence improves, we believe companies will be more proactive about spending their cash to acquire businesses, or to get more employees on board.’

In the 12 months to the end of January, the Kames Ethical Equity fund returned more than double the FTSE All Share, with a rise of 26.4% compared with 10.1% for the index. Over three years, the fund has returned 48.4% compared versus a 27.7% rise for the FTSE All Share.

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

Audrey Ryan
Audrey Ryan
59/155 in Equity - UK (All Companies) (Performance over 3 years) Average Total Return: 56.29%
Citywire TV
Play Tesco, Japan and the rise of the central banker

Tesco, Japan and the rise of the central banker

 Libby Ashby and leading wealth managers scrutinise the food retail sector, Japan’s consumption tax hike and political risk in the markets.

Play Colin McLean's mid-cap picks

Colin McLean's mid-cap picks

The SVM director and fund manager on his pick of the UK mid-caps.

Play Gervais Williams: the real reason to worry about Quindell

Gervais Williams: the real reason to worry about Quindell

Citywire AA-rated manager Gervais Williams has argued that sentiment is the true danger to Quindell.

Your Business: Cover Star Club

Profile: Psigma's Edinburgh boss on why he is in Scotland long term

Profile: Psigma's Edinburgh boss on why he is in Scotland long term

When Tim Wishart agreed to launch an Edinburgh office for Psigma he was not expecting to  head the company’s first overseas team

Wealth Manager on Twitter