THE GLOOM in investment management deepened yesterday when Brewin Dolphin reported a slump in commissions, as clients stayed on the sidelines amid volatile markets.
Brewin said first quarter commission income fell 24.4 per cent year-on-year to £17.5m.
The firm said the figure had continued to fall into January but other income has held up.
The update comes days after Charles Stanley blamed “the poor trading environment, euro uncertainty and depressed UK economy” for a drop in revenue of nearly a sixth to £27.3m.
Yesterday Brewin said total funds under management were up 3.8 per cent to £24.9bn, with recovering stock markets helping offset a £100m net outflow of funds.
Analyst David McCann at Numis said: “This is the same trend that Charles Stanley reported last week: it appears private client activity levels are well down.”
Brewin said discretionary funds saw a £100m net inflow though advisory funds shed £200m during the quarter.
First quarter financial planning and trail income was up 26.6 per cent and investment management fees increased 15.8 per cent.
It caps a major week for Brewin, whose advisory and broking business started a new life yesterday under the ownership of Spain’s N+1.
