Quilter lifts AUM 5% in March quarter as inflows improve

Quilter’s assets under management and administration rose 5% to £111.6bn in the quarter ended March from the December quarter, reflecting improved net inflows and higher equity markets.

This was partially offset by rising bond yields in the quarter which reduced the market value of bond portfolios, the UK wealth and asset manager said in a statement on Wednesday.

“We are pleased to report that our first quarter net flows are running at double the level experienced last year, reflecting the momentum in our business, actions we have taken and tentative signs of improving market sentiment,” said CEO Steven Levin.

Average assets under management and administration (AuMA) for the first quarter of £108.3bn was 6% ahead of the 2023 full-year average of £102.1bn.

Core net inflows of £810m were about double the prior year level.

The Quilter channel delivered another strong quarter, with net inflows as an annualised percentage of opening AuMA of 20% in the high net worth segment and 12% in the affluent segment.

It reported year-on-year increases in gross inflows of 57% in the high net worth segment and 16% in the affluent segment.

“The strength of our platform proposition continues to be evidenced by increased levels of new business,” it said.

Quilter channel gross and net flows onto the platform increased by 25% and 23%, respectively, year on year.

“The Quilter channel continues to drive strong flows in both our high net worth and affluent segments. Our focus on broadening and deepening our business relationships is demonstrating clear results, with IFA and Quilter channel gross new business increasing by 34% and 21%, respectively, on the prior year,” said Levin.

“We are particularly pleased that our platform achieved net flows of over £1bn during the quarter, representing the strongest quarter for platform net inflows during our time as a listed company. Moreover, a 41% year-on-year growth in first quarter gross new business from IFAs in the affluent segment led to an over 400% increase in net inflows from IFAs onto the Quilter Platform in the quarter.”

In recent years, Quilter, whose primary listing is in the UK and which was formerly known as Old Mutual Wealth Management, has spent nearly £500m on a new technology platform that offers easier and more secure management of assets, aiming to retain and attract financial advisers.

Quilter’s share price on the JSE gained 3.8% to R25.10, giving it a market cap of R35.2bn. The share price is up 37% over the past year.

MackenzieJ@arena.africa