Quilter 'resilient' after tougher third quarter

Quilter reported “resilient” gross and net flows in its third quarter update on Wednesday, amid a “volatile” market environment.

The FTSE 250 company said assets under management and administration totalled £96.9bn at the end of September - a decline of 2% from 30 June, which the board put down to a “challenging” market backdrop over the summer, with both bond and equity values declining.

Average assets under management and administration for the third quarter came in at £100.1bn, which was 5% lower than the first-half average of £105.3bn.

Net inflows in the quarter totalled £0.2b, down from £1bn year-on-year and £0.3bn in the second quarter.

The company said the third quarter was typically a “seasonally slow” quarter, with that exacerbated by increasing market volatility and cost-of-living pressures, reducing gross flows.

It described a “solid performance” from the Quilter channel, with quarterly gross platform flows of £637m, compared to £654m a year ago, which the directors said demonstrated “constant” Quilter adviser productivity, which was stable at £2.2m.

Quilter channel quarterly net inflows slipped to £430m from £469m on the year, which the board said reflected “moderately higher” levels of redemptions.

The company said it remained “very focussed” on attracting new independent financial adviser firms to its UK platform, and was making “good progress” despite the current market challenges.

It also reported a “resilient performance” from the high net worth segment, with “moderately lower” gross flows and “stable” retention leading to net flows for the quarter of £222m, compared to £329m a year ago.

“While we are living through uncertain times, our business is well positioned to win in the UK wealth market,” said chief executive officer Paul Feeney.

“I am pleased that we continue to deliver positive net flows even through the quietest quarter of this unprecedented year.

“The Quilter channel, in particular, has continued to deliver robust flows to our platform and the high net worth segment has continued to deliver a resilient performance.”

Feeney said that over the last decade, his focus had been on building a “modern integrated wealth manager” that was “strategically positioned” in the largest, secular growth market in UK financial services.

“I am delighted to be handing on such a business to my successor, Steven [Levin], and I am confident in Quilter's potential and ability to drive growth and deliver efficiency.

“The strength of our advice-based model means we are well positioned to take advantage of the opportunities ahead, even in tough markets.”

At 0935 BST, shares in Quilter were down 3.88% at 89.62p.

Reporting by Josh White at Sharecast.com.