Investment summary

In its first quarter to end December interim management statement, BD announced good overall trends in assets managed (up from £24 to £24.9bn against our £25.8bn FY12 estimate), although this was driven by market movements rather than inflows. As expected, commissions fell (down 24.4% on a like-for-like basis) a similar business message to that reported by Charles Stanley. As a consequence, there has been a net cut in 2012 revenue forecasts from £291m to £282m and normalised pre-tax profit from £46.2m to £40.9m. Our dividend forecasts are unchanged.

Last updated on 01/02/2012

Industry outlook

We believe the wealth management market is a very attractive over the long term. It offers a superior growth market driven by increasing personal wealth, the timing of wealth transfers, demographics, personal provision provision for retirement, tax and regulatory changes and the expected decline in IFAs from 2012/13.

Last updated on 09/12/2011