Brewin Dolphin has been busy moving funds to relatively safer areas in the face of market turbulence - which has reduced trading volumes and commission income. In fact, underlying profits fell 17.1 per cent in the period to £18.9m, after adjusting for the previous year's £6m levy paid to the Financial Services Compensation Scheme. But with a rise in discretionary funds set to boost margins, the shares retain their attraction.
Total managed funds rose from £25bn a year earlier to £25.7bn and, significantly, the level of funds held on a discretionary basis - where margins are better than funds managed on an advisory basis - rose from £15.5bn to £17.3bn. However, there was a net fund outflow as £300m of discretionary net fund inflows were countered by £400m of net outflows from the advisory side.