COMPANIES Market volatility spurs downturn in Quilter

QUILTER saw its net client cash flow (NCCF) declining in the third quarter as a result of a decline in investor sentiment and market volatility.

NCCF declined to £1.1 billion (R20.46bn) during the quarter, down from £1.9bn compared with the third quarter of 2017. However, the group said the third quarter NCCF was marginally ahead of the second quarter, but below the high level achieved in the third quarter of 2017 when market activity was more favourable.

Quilter chief executive Paul Feeney said in the last quarter more volatile investment markets and geopolitical uncertainty had contributed to weaker investor sentiment resulting in a market-wide reduction in net retail flows.

Quilter, the former Old Mutual Wealth, has a primary listing and a secondary listing on the JSE.

It was listed in June after a managed separation by Old Mutual Plc.

“Year to date flows across the market are down 55 percent on the comparable period according to the Investment Association. Against this backdrop, I am pleased to report continued solid performance in NCCF of £1.1bn, excluding Quilter Life Assurance, in the third quarter, marginally ahead of the second quarter.” The group remained confident about its prospects, despite the volatility in the market. “We remain confident in the long-term prospects for our business model. We look forward to reporting our full year results in March.”

During the quarter Assets Under Management/Administration rose by 3.23 percent to £118.1bn, up from £114.4bn, compared to the third quarter of last year. Total integrated flows of £3bn year to date were up by 7 percent during the quarter and the group said this demonstrated the strength of its advice-based business model.

Quilter shares closed 0.37 percent lower at R 21.50 on the JSE yesterday.

SANDILE MCHUNU