By Muvija M
-Another quarter of robust inflows helped British wealth manager Brewin Dolphin’s total funds reach a fresh record, but its boss said the rate of growth will likely slow in the current quarter as people go on vacations after months of virus curbs.
After a 6.1% annualised growth in net flows in the three months to June, Brewin CEO Robin Beer told Reuters that it would be unlikely to achieve that in the current quarter as Britons go on holidays after the so-called “Freedom Day” earlier in the week when all pandemic restrictions were lifted.
Brewin’s gross discretionary fund inflows were 1.3 billion pounds ($1.79 billion), marking the second straight quarter of record money coming in, of which over 70% was from new clients.
Vaccination drives, a clearer economic outlook and a surge in savings during lockdowns have encouraged people to commit to investment planning, helping money managers post record funds under management.
Brewin’s net inflows came in at 700 million pounds for the third quarter of its fiscal year ending in September, boosting total funds by 6.5% to 56 billion pounds – breaking an earlier record of 51.4 billion pounds as of March.
Shares in Brewin rose 1.6% to 359 pence by 0949 GMT, taking year-to-date gains to nearly 18% – outperforming the wider index.
Beer expressed confidence that the momentum will continue into next financial year as face-to-face meetings have resumed, increasing the chances of signing new clients who might have been reluctant to trust someone with their money over virtual meetings.
He also told Reuters on a call that even as restrictions ease and people’s discretionary spending goes up a bit, the health crisis and months of being locked down in their homes have made people realise the importance of financial planning.
($1 = 0.7271 pounds)