UK’s Brewin Dolphin takes 7 billion pound selloff hit

(Reuters) – London-based Brewin Dolphin (BRW.L) saw 7.1 billion pounds wiped off the funds it manages in its last quarter and said on Friday it could not predict the effect of the coronavirus pandemic on profitability as the worst selloff in a decade hammered investments. “Not surprisingly, the rapid spread […]

(Reuters) – London-based Brewin Dolphin (BRW.L) saw 7.1 billion pounds wiped off the funds it manages in its last quarter and said on Friday it could not predict the effect of the coronavirus pandemic on profitability as the worst selloff in a decade hammered investments.

“Not surprisingly, the rapid spread of COVID-19 and the unprecedented reaction of the global markets have negatively impacted the value of our clients’ funds and consequently our second quarter total income,” the company said.

Total funds decreased by 14.6% to 41.4 billion pounds ($51.66 billion) in its second quarter.

Larger U.S. rival BlackRock (BLK.N) on Thursday said assets under its management fell by nearly a trillion dollars at the end of its fourth quarter due to the market turmoil. British peers Ashmore (ASHM.L) and Jupiter Fund Management (JUP.L) posted 22% and 18.3% falls in assets under management, respectively, while also reporting massive net outflows and market losses.

The coronavirus pandemic has caused governments across the world to enforce massive lockdowns and announce stimulus measures for businesses as markets tank on fears of a deep recession.

Still, Brewin Dolphin said it had no intention of partaking in any government schemes, citing a strong balance sheet with good cash generation.

“We continue to be fully engaged with our clients and are confident in our ability to respond to the increased demand for financial advice at this time of uncertainty,” Brewin Dolphin said.

($1 = 0.8014 pounds)

Reporting by Muvija M in Bengaluru; Editing by Ramakrishnan M.

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