Invested for the future

Our vision is to become the UK’s leading provider of personalised wealth and investment management services, delivering a compelling client proposition, rewarding careers and sustainable shareholder returns.

Our Investment Proposition

Why invest in Brewin Dolphin Holdings PLC?
As a leading UK wealth manager, we are invested for the future of our stakeholders. We exist to protect and grow our clients’ wealth.

Brewin Dolphin is recognised and well known for providing trusted advice and investment expertise

During our long history as a respected provider of high-quality financial services to clients, we have earned a reputation for integrity and trustworthiness that stands us in good stead for the future.

The future direction of our market place is positive

As the role of the state diminishes, people need increasingly to take responsibility for their financial affairs such as savings, investments, retirement planning and long-term care. Demand for financial advisory services and investment management is growing as a result, creating good long- term prospects for continued growth.

Our brand, scale and investment in our people enable us to stand out

We are one of the largest wealth management companies. We attract, develop and retain the best talent to strengthen existing relationships, win new clients and help us build an even stronger organisation.

We are making good progress with our strategy and investing for the future

We have significantly strengthened our operations and improved our operational efficiency in recent years. Now we are progressing with our strategy for growth, constantly investing to increase the number of clients we serve and the proportion of their wealth that we manage.

Invested for
the future

These eight ‘enablers’ ensure we can deliver the services our clients need and support our growth strategy.

2017 Financial Highlights1

A year of strong growth and performance

  1. Continuing operations.
  2. These figures have been adjusted to exclude redundancy costs, FSCS levy rebate, onerous contracts, one-off migration costs, amortisation of client relationships, acquisition costs, incentivisation awards and disposal of available-for-sale investments - see page 31 of the full report.
  3. See note 13 to the Financial Statements.
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About us A scalable platform for growth

Our rich heritage and reputation for trust, integrity and service alongside our regional presence provides a strong platform from which we can grow our business.

Our talented and knowledgeable people are delivering the right services and expertise across the country to help clients reach their goals.

Who we are

Founded in 1762, Brewin Dolphin is a leading independently-owned UK wealth manager. We are listed on the London Stock Exchange, and a member of the FTSE 250 Index. We take an integrated, advice-led approach to protecting and growing our clients’ wealth by combining our experience and expertise in financial planning and investment management.

Our success is built upon our belief in the importance of long-term client relationships and our commitment to a highly personalised and high-quality service.

We have 1,614 eployees
We have 29 offices.
Our location in the British Isles Our location in the British Isles
Our market Challenges and opportunities

Social, economic, legislative and technological forces are constantly creating challenges and opportunities throughout the financial services market place. Here, we look at how our ability to find the right response to these forces is enabling us to invest for the future.

How people save and invest to meet their needs is directly affected by societal influences, from changing Government policy to evolving consumer preferences.

As the Government’s long-term personal care policies change and employers increasingly withdraw from offering final salary pension schemes, people are becoming more self-reliant in planning and securing their long-term futures. This has created the opportunity for Brewin Dolphin to help growing numbers of individuals fulfil their ambitions via our advice-led, relationship-based and needs-driven proposition. Our focus on long-term relationships is enabling us to meet our clients’ life-time needs.

As the UK population ages, many people approaching retirement have benefited from a positive property market over recent decades and generous pension provision. This means that many have generated substantial personal and familial wealth that they now wish to protect and grow. By basing our client relationships on in-depth knowledge and understanding of individual client goals, we can design tailored solutions that fulfil their goals and needs.

Consumer demands are changing too, as individuals increasingly seek outcome-oriented solutions that help them fulfil their personal ambitions. As a result, our emphasis is shifting to embrace a range of priorities besides investment performance alone. The fully bespoke, advice-led wealth management service we offer is enabling us to take advantage of this trend. Critically, our continued focus on addressing individual client needs ensures that our offering remains relevant over the long-term.

The global investment environment and competitive landscape cannot be separated from economic forces, which in turn are influenced by world events.

In the UK in particular, a decade of low interest rates has created challenges for people seeking low-risk means of maintaining and growing their capital. Even slight rises, such as the one announced on 2 November 2017 by the Bank of England, are unlikely to make a substantial positive difference in the short term. As a result, growing numbers of people are seeking advice on how to grow their investments without taking undue risk. Our ability to adapt rapidly to changing client needs and market environments helps us to optimise investment performance. We are significantly broadening the range of clients we can help in this area with the design and test implementation of the WealthPilot service.

Geopolitical uncertainties across the world are also highly influential, with shifting political relationships and other uncertainties having the potential to disrupt the global investment environment. Heightened risk and volatility can have negative short-term impacts on business and stock market performance. At Brewin Dolphin, we plan for the long-term. By doing so, we seek to ensure that the interests of our clients, employees and shareholders are always upheld.

Closer to home, the UK wealth management industry is fragmented and constantly changing, as new entrants arrive, others depart and consolidation continues. Within this environment, Brewin Dolphin’s trusted brand and established reputation for delivering sound advice and consistent performance enable us to sustain long-term client relationships. During 2017, we further extended and strengthened our own market presence with the acquisition of DLAM.

The 2008 financial crisis continues to exert its influence over the global financial services industry, most particularly in the form of evermore stringent legislation to protect consumers.

One effect of this is the rising cost of compliance, with many companies facing significant and escalating cost challenges in areas including recruitment, training and restructuring. As one of the largest players in the UK wealth management industry, Brewin Dolphin not only has the scale to absorb the costs of change and allocate resources appropriately – we also have the expertise to adapt fast and efficiently to new regulation.

Fees for services are set to become more transparent during 2018 with the introduction of the EU’s MiFID II. This will enable clients to more easily gauge the value of the services they receive. At Brewin Dolphin, we believe we can clearly demonstrate the value of our advice-led proposition. In addition, wherever possible we continue to leverage our scale to reduce the cost of investments within our client portfolio.

Other material legislative factors include the growing levels of choice and complexity that people face as pension freedom rules and other changes come into effect, leading more individuals to seek professional financial advice. We have a vital role to play in enabling clients to receive the advice they need, ensuring through our recruitment and development practices that our people can advise on complex needs.

Technology is a differentiator in many areas of the business and complements the way we interact with clients.

New technology can be both a powerful enabler and a threat, particularly in financial services where it has the potential to transform many aspects of the wealth management industry. Our overriding emphasis on client relationships, however, makes communication the most important of these.

As increasing numbers of people use digital channels to communicate and engage whenever they wish, we have embedded digital solutions that increase client choice to complement our 29-strong branch network.

We also continue to offer new ways of enabling clients to communicate in the ways that suit them best, such as using Skype in our new WealthPilot proposition (see page 17).

View from the top

Focused delivery

“A highlight of the year was the increase in funds under management which grew by 13.3% to a record of £40.1 billion.”

Simon Miller

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Invested for the future to deliver long-term growth

“2017 was a successful year for the business, during which we continued to look after our clients’ investment and advice needs in increasingly uncertain and complex times.”

David Nicol
Chief Executive

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Good growth in our core services from strong funds inflows

“The Group’s financial performance for the year to 30 September 2017 was strong.”

Andrew Westenberger
Finance Director

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Our strategy Delivering our strategy for growth

Our vision is to become the UK’s leading provider of personalised wealth and investment management services, delivering a compelling client proposition, rewarding careers and sustainable shareholder returns.

1 2 3 4

Revenue Growth

Grow the business in both absolute and market share terms, by increasing the number of clients and the proportion of their wealth that we manage.

What we said we would do

  • Further new services targeting a range of discrete segments, based on client and intermediary research.
  • Continued investment in client-facing new hires.
  • Actively develop our already strong intermediary relationships.
  • Further training in business development capabilities for our people.
  • Continued investment in technology to improve accessibility for clients.

2017 Progress

  • Net new discretionary funds flow of 8%, with approximately 90% from intermediaries.
  • Achieved £3.4 billion gross fund inflows into our core business taking our total funds to more than £40 billion.
  • Continued to hire the best available advisory and financial planning professionals.
  • Invested further in training to help advisers get to the root of our clients’ needs.
  • Approved the development of an advice-led proposition designed around the needs of clients with sophisticated and complex needs.
  • Launched pioneering Financial Planning Academy apprenticeship scheme.
  • Broadened dialogue with intermediaries, and introduced services based on their stated requirements.
  • Continued investment in technology to improve client communications and service delivery.

Future focus

  • Develop an advice-led proposition for clients with sophisticated and complex needs.
  • Continued development of intermediary relationships.
  • Further segmentation of clients to increase relevance and increase funds flow.
  • Continued evolution of focused marketing strategy.
  • Continued investment in our Financial Planning Academy.
  • Rollout of WealthPilot, our low-cost advice platform.

Improved efficiency

Maintain an efficient and scalable operating model enabling investment, developing greater productivity and sustaining competitive pricing.

What we said we would do

  • Invest in technology and process improvement to increase efficiency and reduce costs.

2017 progress

  • Embedded new order management system, maximising the time advisers can spend with clients.
  • Continued to improve collaboration and knowledge-sharing across offices.
  • Embedded and further enhanced internal management systems for HR and financial reporting and analysis.
  • Used our scale to enhance our unit purchasing power when negotiating with institutional funds.

Future focus

  • Increase efficiency and reduce costs through continued investment in technology.

Capital sufficiency

Maintain sufficient capital to maximise opportunities and cover risks.

What we said we would do

  • Continue to maintain capital at a level that enables investment in emerging opportunities from a position of strength.

2017 progress

  • Maintained sufficient capital to enable investment opportunities, reduce risk and provide comfort during periods of uncertainty.
  • Acquired DLAM, gaining experienced wealth and investment managers and strong client relationships, while maintaining capital sufficiency.

Future focus

  • From a position of strength, continue to maintain capital at a level that enables investment in emerging opportunities.

Dividend growth

Grow our dividend in line with earnings.

What we said we would do

  • Continue policy of target payment of 60% to 80% of adjusted diluted EPS to ensure we grow our dividend in line with earnings.

2017 profress

  • Dividend payout ratio of 77% of adjusted diluted EPS.

Future focus

  • Maintain policy of target payment of 60% to 80% of adjusted diluted EPS to ensure our dividend grows in line with earnings.

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