Quilter reports lower year-on-year third quarter cash flow

Quilter, the UK wealth management business that was spun out of Old mutual earlier this year posted a third quarter net client cash flow of £1.1bn – excluding Quilter Life Assurance. A 42% drop compared with the £1.9bn reported in the third quarter of 2017.

The company said assets under management and administration rose 3% year to date to £118.1bn despite mixed global market performance.

“Over the last quarter more volatile investment markets and geopolitical uncertainty have contributed to weaker investor sentiment resulting in a market-wide reduction in net retail flows”, Paul Feeney, chief executive.

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

“Year to date flows across the market are down 55% on the comparable period according to the Investment Association.”

Quilter Life Assurance, which saw outflows of £1.5bn, was the main detractor, with all other divisions recording positive flows.

Excluding the life assurance business Quilter’s net client cash flows (NCCF) are still 23% lower compared to the same nine month period last year, down to £4.1bn.

“Worthy of note is the more cautious approach both we and the advisers who use our platform have taken towards defined benefit to defined contribution pension transfers. These totalled £0.3bn in the third quarter of 2018 versus £0.6bn in the comparable period of 2017. We remain confident in the long term prospects for our business model. We look forward to reporting our full year results in March 2019,” Feeney added.

The firm’s wealth management arm Quilter Cheviot’s assets reached £24.4bn, seeing net inflows of £0.6 billion and positive market movement of £0.2 billion, over the nine month period.

In June, Quilter – formerly known as Old Mutual Wealth Management – listed in Johannesburg and London following its separation from former parent Old Mutual Ltd.

ABOUT THE AUTHOR
Pedro Gonçalves
Pedro Gonçalves is Financial Correspondent at International Investment.

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