Wealth manager sees ‘big inflows’ from IFAs

Wealth manager Brewin Dolphin said it had made significant inroads into the financial adviser market in the run-up to the RDR in 2012.

Rob Burgeman, director of investment management at Brewin Dolphin, said that the firm had received “big inflows” from advisers last year.

Mr Burgeman said: “Our proposition has been well received by the intermediary community in the run up to the RDR who welcome our experience and integrity when dealing with their business.

“The difficult market conditions of the past few years have focused minds on the key question of specialisation.”

Brewin Dolphin’s annual results, for the year ending September 30 2012, showed that the “most significant rise” in its funds under management came from its discretionary business, which grew 16.7 per cent to £18.2bn.

The firm’s overall funds under management for the same period rose by 7.9 per cent to £25.9bn.

The growth comes as Brewin Dolphin has continued to expand its research capability of direct European equities, as well as extending its research coverage of exchange-traded funds (ETFs) to cover 15 ETF providers of both synthetic and physically replicating tracker funds.

The firm currently offers 22 European stocks in specific areas that investors could not access through UK companies, such as EADS.

Ed Salvesen, deputy head of equity research, said that the expansion of Brewin’s European direct equity coverage was a slow process but that the firm had seen a pick-up in demand from clients for direct exposure in the past six months.

The wealth manager also expressed its hope that the growth of low-cost ETF provider Vanguard in the UK would trigger a price war in ETFs, lowering the costs close to the levels seen in the US, where annual management charges can dip below 0.1 per cent.

The firm said that if Vanguard could charge fees as low as 0.1 per cent for a FTSE tracker then iShares, the dominant market leader after the BlackRock subsidiary’s acquisition of Credit Suisse’s ETF business, would struggle to justify its existing fee levels in spite of its size and liquidity advantage.

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Monday, January 28th, 2013 EN

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