Quilter ends strong year with solid fourth quarter

Quilter reported a strong final quarter of 2021 in a trading update on Wednesday, with a “substantial” improvement in year-on-year net flows.

The FTSE 250 wealth manager said its assets under management and administration totalled £111.8bn at the end of December, up 13% year-on-year, with that growth supported by improved net flows and positive market movement.

Year-to-date net inflows totalled £4b, up from £1.5bn a year earlier, representing 4% of opening assets under management and administration, rising from 2% at the same point in 2020.

Fourth quarter net inflows came in at £1b, growing from £0.3bn year-on-year.

Average assets under management and administration - the primary influence of net management fee revenue - rose 17% year-on-year to £105.3bn.

The board reported “strong performance” from the company’s new Quilter Investment Platform, with gross flows rising 58% to £9bn, and net inflows surging 136% to £3.5bn during the year, coupled with stable retention.

Net platform inflows represented 6% of opening assets under administration, improving from 3% for 2020.

Quilter said defined benefit-to-defined contribution transfers in the fourth quarter were £114m, and £581m for the year as a whole, which were both lower than the comparable of £177m and £862m, respectively.

“2021 was a year of continued business challenges caused by the Covid-19 pandemic coupled with a degree of market volatility,” said chief executive officer Paul Feeney.

“However, it was also a year which highlighted the strength of our advice-based model, which delivered consistent flows of around £1bn a quarter into our business during 2021 and we expect momentum to continue to improve in 2022.

“I am delighted with how our new Quilter Investment Platform has been received by financial advisers and customers with a sharp increase in gross flows and net inflows during the year.”

Feeney said gross flows from independent financial advisers (IFAs) were up 63% year-on-year, reversing the declines from that channel in recent years leading up to the platform's migration to new technology.

“I expect this momentum to build as we begin to encourage new IFA firms to start using our new platform given the wider range of products we can offer and assets we can now hold.

“I am also pleased with the significant year-on-year improvement in flows into Quilter Cheviot.”

Net inflows there were £282m in the fourth quarter, and £1.06bn for the full year, which Paul Feeney said were both “significantly higher” than the 2020 comparatives of £17m and £264m, respectively.

Full year Quilter Cheviot net inflows represented 4% of opening assets under management, compared to 1% for the prior year.

“Although rebalancing of our MPS portfolio over the course of the year contributed to a drag in net inflows into Quilter Investors, the launch of our repositioned Wealth Select range later this year will remove this potential headwind,” Feeney said.

“I am also delighted to welcome Marcus Brookes as chief investment officer of Quilter Investors.

“Marcus will join us in the second quarter and brings great experience and insight in creating multi-asset solutions that meet client expectations, which will underpin the next phase of Quilter Investors' growth.”

At 0856 GMT, shares in Quilter were down 0.7% at 142.75p.