Quilter reports £0.5bn in net cash flows to the end of March

WEALTH management company Quilter plc yesterday reported £0.5 billion (R9.18bn) in net client cash flows (NCCF), excluding Quilter Life Assurance, for the first quarter to end March, down from £0.6bn during the comparable quarter to end December on the back of the fluid market conditions in the UK.

The group said that the first-quarter NCCF represented 2 percent of opening assets under management and administration (Auma) on an annualised basis, reflecting the impact that the uncertain political environment in the UK continued to have on discretionary investor sentiment.

Quilter said its Auma, however, increased 5.1 percent to £114.9bn from £109.3bn in the last quarter.

It said the increase was ahead of the prior year of £111.6bn, but in line with the average for 2018 of £114.7bn.

Chief executive Paul Feeney said net client cash flows continued to be affected by the challenging markets as indicated at their full-year results.

“However, we continue to be encouraged by the resilience of integrated flows which have remained robust during this period, and the high level of customer asset retention across our businesses which was broadly stable on 2018 at 89 percent.

“While near-term headwinds remain, this demonstrates that our clients and their advisers value Quilter’s integrated advice-led model, and continues to be supportive of our operating margin and revenue outlook,” Feeney said.

Quilter, formerly Old Mutual Wealth, was listed separately after a managed separation from Old Mutual plc last year.

The group said the overall trends in gross sales and outflows across each business were similar to the last quarter of 2018.

“The expected loss of a £0.2bn institutional-like portfolio within Quilter Cheviot is not reflected in the first quarter results but is anticipated to be withdrawn during the second quarter,” the group said.

This month Quilter announced that it planned to acquire the entire issued ordinary share capital of UK advisory firm, Lighthouse Group, for approximately £46.2 million.

Yesterday, Feeney said that the Lighthouse scheme document was circulated to shareholders on Monday.

Quilter shares gained 0.60 percent on the JSE yesterday to close at R28.23.