British wealth manager Brewin Dolphin has recorded a decrease in funds under management in Q2 due to the Covid-19 pandemic.
The firm’s total funds as of 31 March 2020 were £41.4bn, a decrease of 15% from £48.5bn in 2019-end.
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This was driven by negative market movements of £7.5bn.
In the six months to March, the firm reported £600m in net inflows.
Strong flows in model portfolio service (MPS) and demand for the firm’s advice-led services added £500m to its discretionary fund management service.
The firm’s total income in the first half increased 8% year-on-year to £175.8m from £162.3m, of which £9.3m was due to acquisitions.
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By GlobalDataBrewin Dolphin CEO David Nicol said: “We were encouraged by our good performance in the first quarter with improving markets and positive discretionary net inflows, which strongly accelerated into the second quarter.
“Not surprisingly, the rapid spread of COVID-19 and the unprecedented reaction of the global markets, has negatively impacted the value of our clients’ funds and consequently our second quarter total income.
“We have a strong balance sheet with good cash generation, and a robust regulatory capital position, which will support us as markets recover and enable us to service the growing demand for financial advice in the UK and Ireland. We currently have no intention of participating in any Government schemes.”
