Wealth manager Brewin Dolphin has completed two of the four transfers to restructure its MPS service into the new manager-of-managers strategies announced in January.
Brewin Dolphin has transferred about GBP750 million (out of the circa GBP1.5 billion) from third party retail funds into its new segregated investment mandates. This means that the cost saving has started already with about GBP3 million of annual savings expected after the last two transfers complete in April and May.
In addition to the ongoing underlying cost reduction, Brewin Dolphin has achieved one off cost savings via two institutional cross trades that has saved advisers’ clients transaction costs.
Robin Beer, managing director of investment solutions and distribution at Brewin Dolphin, says: “In addition to the ongoing cost savings, we’ve been able to save advisers’ clients an estimated GBP150,000 of transactions costs so far as two fund managers were able to match around GBP45m with a seller of the same assets. By ‘swapping’ the assets with the seller rather than buying them on the open market, we have avoiding significant purchasing costs. That’s another advantage of our manager-of-managers approach.”