Themes 2 • Good progress • Growth in funds under management • Regulatory impact and costs • Continued investment in the brand • Business review to identify additional opportunities
Results – 26 Weeks to March 2011 3 March 2011 March 2010 % Change £’000 £’000 Revenue 128,180 112,999 13.4% Other Operating Income 7,849 7,947 -1.2% Total Income 136,029 120,946 12.5% Profit before tax* 22,869 20,925 9.3% Profit before tax 11,996 15,224 -21.2% Diluted earnings per share 3.6p 4.6p -21.7% Diluted earnings per share* 7.0p 6.4p 9.4% Dividend 3.55p 3.55p - * excluding redundancy costs, additional FSCS Levy, contract renewal payments, amortisation of client relationships.
Investment Management Profits 4 March 2011 March 2010 % Change £'000 £'000 Total Income 131,465 115,061 14.3% Salaries (43,546) (39,181) 11.1% Other operating costs (47,429) (41,090) 15.4% Net finance income 156 302 -48.3% Profit before profit share* 40,646 35,092 15.8% Profit share (17,887) (15,129) 18.2% Profit before tax* 22,759 19,963 14.0% Fully diluted EPS* 6.9p 6.1p 13.1% * excluding redundancy costs, additional FSCS Levy, contract renewal payments and amortisation of client relationships.
5 Capital Adequacy
Funds Under Management 7 Indices 27 March 2011 26 September % Change 2010 FTSE APCIMS Private Investor 2,977 2,844 4.7% Series Balanced Portfolio FTSE 100 5,901 5,598 5.4% Funds Discretionary funds under £15.5bn £14.0bn 10.7% management Advisory funds under £9.5bn £9.2bn 3.3% management Total managed funds £25.0bn £23.2bn 7.8%
Funds Under Management Flow 8 Advisory funds Discretionary Total Managed funds funds £ billion £ billion £ billion Value of funds at 26 9.2 14.0 23.2 September 2010 Inflows 0.2 0.9 1.1 Outflows (0.1) (0.1) (0.2) Market movement 0.2 0.7 0.9 Value of funds at 27 9.5 15.5 25.0 March 2011 % Increase in funds 3.3% 10.7% 7.8% since Sept 2010
Return on Funds Under Management 9 2011 2010 2009 (adjusted for interest) Return on Discretionary Funds 1.20% 1.19% 1.17% Return on Advisory Funds 0.92% 0.88% 0.77%
10 Split of Income
Regulatory Impact on the Business 11 • Financial Services Compensation Scheme levy (FSCS) • Retail Distribution Review (RDR) • EU’s Packaged Retail Investment Products (PRIPs) • The new structure and the Financial Conduct Authority (FCA)
12 Corporate Advisory & Broking Disposal on track
13 Developments
Brand Investment
Client Survey 15 An independent survey conducted by Ledbury Research • 5,873 interviews completed by clients • 83% overall satisfaction • 76% are likely to recommend Brewin Dolphin • 73% have half or more of their wealth with Brewin Dolphin • Clients who also see our Financial Planners, consistently invest a higher proportion of their wealth with us
Business Review 16 • Major review of operations and business activities • Systems Review – now in phase 2 • Integrated proposition to include Financial Planning • Efficient solution for smaller portfolios • 2 – 3 years to achieve maximum benefits
Strategy 17 • Leverage scale of one of the UK’s largest independent investment managers • Build on recurring revenue and discretionary management • Retain and attract clients through richer levels of customer service • Attract and motivate talented people and to build the brand
18 Outlook
20 Analysis of Funds
21 Allocation of Funds Under Management
22 Total Funds in Special Services - 27th March 2011
Map 23
Key Facts 24 • 41 offices • Total Staff 1884 • FSA Approved Staff 648 • CF30s 628 • Staff Shareholders own 23%
Approach to Investment 25 What makes us special is that the person who talks to the client makes the investment decisions . With the help of our • Asset Allocation Committee • Strong research departments • Collective funds analysis service • Model portfolios management options for IFAs • Strong compliance
Remuneration 26 • Basic salary • Profit share - partly paid in BDH shares • Share ownership • All personnel believe they can make a difference
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