Coronavirus: £7bn wiped off Brewin Dolphin funds
Wealth management firm Brewin Dolphin took a £7.1bn hit on the funds it manages in its latest quarter due to the coronavirus pandemic.
Brewin Dolphin’s total funds decreased by 14.6 per cent to £41.4bn in the second quarter, down from £48.5bn, with discretionary funds down 14.6 per cent to £35.7bn from £41.8bn.
The MSCI WMA Private Investor Balanced Index fell by 15.2 per cent and the FTSE 100 Index fell by 24.8 per cent, during the quarter ended 31 March 2020, due to the uncertainty caused by the coronavirus crisis.
The London-based firm warned it could not predict the impact of the coronavirus pandemic on profitability. However it said it currently had no intention in participating in government schemes set up to help businesses that are struggling during the crisis.
Brewin Dolphin hief executive 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.”
Larger US rival BlackRock yesterday said its assets under its management fell by nearly a trillion dollars at the end of its fourth quarter due to the market turmoil.
Meanwhile, British peers Ashmore and Jupiter Fund Management posted 22 per cent and 18.3 per cent drops in assets under management respectively.