Wealth manager Brewin wary of volatility ahead after record inflows

(Reuters) - Asset manager Brewin Dolphin posted a jump in full-year earnings thanks to record inflows on Wednesday, but warned of market volatility ahead as government support measures unwind and consumer demand falls back into normal levels.

The company's statutory pre-tax profit rose 16.7% to 72.5 million pounds ($97.04 million) in the 12 months to September, with discretionary gross inflows coming in at a record 4 billion pounds. Total funds under management surged 19.5% to 56.9 billion pounds.

Wealth managers have had a robust run over the past year, as massive stimulus measures from central banks and vaccinations uplifted investor sentiment after the initial months of the coronavirus pandemic in 2020, when fears of its impact led to clients pulling out their money in masses.

"After such a strong year, we anticipate markets to be more volatile in 2022, with governments reducing fiscal stimulus and consumer demand normalising," said the wealth manager, which was founded in 1762.

Brewin expects operating costs to grow by mid to high single digits in the fiscal year to September 2022, partly due to wage inflation. It also expects to spend around 26 million pounds, majority of which will go into integrating its custody and settlement system with its client management and trading systems.

The company raised final dividend per share by 12.1% to 11.1 pence, taking the total dividend to 15.7 pence per share.

($1 = 0.7471 pounds)

(Reporting by Muvija M in Bengaluru; Editing by Milla Nissi)