Wealth Manager - the site for professional investment managers

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.
Citywire TV
Play Potential US rate rise, cheap oil & the Europe opportunity

Potential US rate rise, cheap oil & the Europe opportunity

This week we analyse the implications of a possible rise in US interest rates, the impact of cheap oil and the European equity opportunity.  

Play Carmignac's Crowl: what QE could mean for Europe

Carmignac's Crowl: what QE could mean for Europe

The ECB is widely expected to finally fire its QE gun this week. Carmignac's Sandra Crowl discusses the implications for the eurozone.

Play Grexit worries, currency wars and a grizzly outlook for 2015?

Grexit worries, currency wars and a grizzly outlook for 2015?

The first Investment Pulse of the year looks at the potential impact of Greece leaving the euro, volatility in currency markets and the UK’s economic prospects.

Your Business: Cover Star Club

Profile: DIY investing is biggest threat to industry, says Whitechurch

Profile: DIY investing is biggest threat to industry, says Whitechurch

The industry is at risk of pushing potential investors down the DIY route unless it does more to make its services accessible says the Whitechurch Securities boss

Wealth Manager on Twitter