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Investment management fees drive Brewin Dolphin

LONDON (ShareCast) - Total (FP.NX - news) income in the final quarter of 2010 at stockbroker and investment manager Brewin Dolphin (BDNHF.PK - news) was comfortably ahead of the year before, despite a slide in corporate advisory and broking revenue.

In the 14 weeks to 31 December, the first quarter of the company's financial year, total revenue was up 15.9% to £65.9m from £56.9m in the 13 weeks to 25 December 2009.

Investment management revenue rose 18.3% to £59.5m from £50.3m the year before.

Investment management commission edged higher to £25.3m, £0.8m higher than the year before, with the extra week - the period between Christmas and New Year - providing little benefit, as this is traditionally a period of low activity.

Investment management fees rose 32%, or 22% if adjusted for the extra week, to £26.5m from £20.1m the year before.

Corporate advisory and broking income fell 12.9% to £2.2m from £2.5m in the final quarter of 2009.

Year-end discretionary funds under management rose 7.9% to £15.1bn from £14.0bn at the end of September 2010; this was 3.2 percentage points above the growth recorded in the FTSE APCIMS Private Investor Series Balanced Portfolio index.

Advisory funds under management rose 5.4% in the final quarter of 2010 to £9.7bn from £9.2bn.

The group currently has a consolidated capital adequacy surplus of £15m. The group's cash balances excluding client balances as at 31 December 2010 were £41m.

The favourable trading conditions in the final quarter of 2010 have continued into 2011, the company said, though it added the caveat that, as ever, the group's short term performance is dependent on market movement.