Brewin’s shares fell more than two per cent after it said its revenues increased less than forecast, rising 10.7 per cent to £68.1m compared with the same quarter in 2010.
Analysts said 7.6 per cent revenue growth in its investment management division, where it makes 60 per cent of its income, was below expectations, leaving income at £63.9m rather than the £71.7m anticipated.
Brewin’s total funds under management rose 7.3 per cent to £24.9bn in the nine months since September as strong growth in its high-revenue discretionary funds offset a 1.1 per cent fall in its advisory funds.
Numis analyst David McCann said Brewin had seen weaker third quarter commissions than earlier in the year as it refocused towards higher recurring fee incomes, while its asset growth was about three per cent weaker than he had anticipated.
Brewin said about £1bn of new capital flowed into its discretionary funds, which generate higher revenues than advisory funds, taking its assets up 12.9 per cent to £15.8bn.
But capital held in its advisory funds slipped 1.1 per cent to £9.1bn as £430m outflows and a £10m negative market movement cut into funds.
Shore Capital analyst Danielle James said performance in its “more lucrative” discretionary funds was “real growth” for Brewin.
Brewin manages funds for about 130,000 private clients.