Quilter, the UK multinational wealth management company that also has a listing on the JSE, said yesterday first quarter flows had demonstrated continued strong business momentum.
“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,” CEO Steven Levin said.
Group assets under management and administration (AuMA) increased 5% to £111.6 billion at the end of March 2024 compared with December 31, 2023 levels.
This was due to better net inflows and higher equity markets, partially offset by rising bond yields that reduced the market value of bond portfolios, the group said in a trading statement yesterday.
Average AuMA for the first quarter at £108.3bn was 6% ahead of the 2023 full year average of £102.1bn.
Core net inflows of £810 million were approximately double the prior year’s £409m and represented 3% of opening AuMA on an annualised basis (2%).
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.
There were year-on-year increases in gross inflows of 57% in the High Net Worth segment and 16% in the Affluent segment.
“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.
The strength of the Platform proposition continued to be evidenced by increased levels of new business: Quilter channel gross and net flows onto the Platform increased by 25% and 23% respectively year-on-year.”
IFA channel gross inflows onto the Platform increased 41%, with net inflows increasing over 400% to £423m.
Improved new business levels meant the Quilter Platform delivered net inflows of over £1bn in the quarter, the highest level achieved since early 2018, Levin said.
First quarter non-core net outflows of £103m were broadly in line with the comparative period. After non-core net outflows, reported net inflows of £707m represented 3% of opening AuMA (1%). Persistency levels in the quarter remained broadly stable at 90% in the High Net Worth segment and 89% in the Affluent segment.
BUSINESS REPORT