Quilter flags strong third quarter

Quilter reported strong third quarter net inflows of £1.4bn in an update on Wednesday, significantly outpacing the first and second quarter levels and marking record quarterly net inflows of £1.5bn on its platform.

The FTSE 250 company said group assets under management and administration (AuMA) rose 2% to £116.2bn by the end of September, driven by strong inflows and higher market levels, partially offset by sterling appreciation.

Core net inflows for the quarter totaled £1.5bn, equivalent to 5% of opening AuMA on an annualised basis, compared to zero net inflows in the same period in 2023.

In the high net worth segment, gross flows increased to £817m, while easing outflows resulted in net inflows of £284m, a reversal from the £116m net outflow in the third quarter of 2023.

That represented 4% of opening AuMA on an annualised basis.

Quilter's affluent segment meanwhile delivered another strong performance, with year-on-year gross inflows rising by 50% to £3.3bn.

Lower outflows contributed to net inflows of £1.3bn, up from £151m in the third quarter of 2023, representing 6% of opening AuMA.

The company said its platform proposition saw significant growth, with gross inflows and net inflows through the Quilter channel increasing 22% and 31% year-on-year, respectively.

Independent financial adviser (IFA) channel inflows onto the platform surged 76% year-on-year, with net inflows of £821m, a substantial turnaround from the £187m net outflow in the third quarter of 2023.

Quilter recorded nearly £1.5bn in net inflows for the quarter, representing 7% of opening AuMA on an annualised basis.

Persistency levels improved in both the high net worth and affluent segments, reaching 93% and 91%, respectively.

Quilter channel productivity remained stable, with annualised gross sales per adviser at £3.1m in the third quarter.

“In what is traditionally the slower summer quarter, we have delivered an excellent performance,” said chief executive officer Steven Levin.

“Both of our segments contributed to a significantly improved outcome from an already strong first-half base.

“Third quarter core net inflows of £1.5bn and reported net inflows of £1.4bn represented 5% of opening assets on an annualised basis at both a core and reported level.”

Levin said the company’s high net worth segment continued to drive new business momentum which, when coupled with an easing in client withdrawals, led to significantly improved quarterly net inflows of £284m, the highest level since the third quarter of 2021.

That, he said, represented 4% of opening assets on an annualised basis.

“The affluent segment also delivered an excellent result.

“After a very strong first half performance from our Platform, we delivered an acceleration in momentum in the third quarter which led to record quarterly net inflows of nearly £1.5bn.

“This represented 7% of opening assets on an annualised basis.”

In addition, Steven Levin explained that WealthSelect - the firm’s “market-leading” MPS - continued to build on its 10-year track record of outperformance, which saw customers trust Quilter to manage an additional £1.4bn in new gross flows during the third quarter, with a closing assets under management figure of £17.4bn.

“While we look to the future with confidence, the upcoming UK budget has introduced an unwelcome degree of uncertainty to the market.

“Given the importance of a stable tax and regulatory framework for individuals to plan their financial future with confidence, we believe that any meaningful changes proposed to the structure of UK pensions and savings should only be implemented after an appropriate period of industry-wide consultation.

“Additionally, any changes should incorporate transitional arrangements, as has been the general practice to date. We look forward to continued engagement with the UK government in this regard.”

At 1046 BST, shares in Quilter were up 5% at 148.68p.

Reporting by Josh White for Sharecast.com.