Quilter reported a "steady" third quarter with improved year-to-date net inflows despite a "more challenging market backdrop".
In its third quarter trading statement, Quilter added £2.1bn to its AUMA to bring its total as at 30 September 2020 to £109.5bn, nearing the £110.4bn it recorded on 31 December 2019, of which net inflows contributed £100m, while market and other movements provided the remaining £2bn.
‘As expected, third quarter net-flows were seasonally weaker than the first half of the year due to the Covid-19 induced economic slowdown, our planned platform migration in the final quarter and the re-emergence of Brexit related concerns towards the end of the quarter,' said Quilter CEO Paul Feeney (pictured).
Third quarter net-flows were seasonally weaker than the first half of the year due to the Covid-19 induced economic slowdown"
Net flows across the firm's advice and wealth management businesses stagnated but grew AUMA by £800m thanks to market and other movements, while the wealth platforms contributed the total £100m of net inflows, and also enjoyed growth from market and other movements, contributing £1.6bn across the quarter.
Quilter said it expects to complete the second major migration of advisers and clients from previous owner Old Mutual's platform by the last weekend of November 2020.
In the trading update it revealed that it expects 80% of platform assets to be migrated to new platform technology by the end of the year.
The company in August said it had paused an earlier programme of redundancies and increased its investment manager headcount increased to 169 at the end of June 2020, from 167 in December 2019, and a low of 155 at the end of December 2018.
Feeney added: "Despite a more challenging market backdrop, we are pleased with the substantial year-on-year improvement in net flows. Gross flows were broadly stable and outflows relating to the departure of a specific team in Quilter Cheviot reduced to £31m in the quarter from £615m in the third quarter of 2019.
"However, both period-end AUMA of £109.5bn and average AUMA of £106.2bn were ahead of the 30 June 2020 closing positions of £107.4bn and £105.1bn respectively.
"This was supported by good investment performance from our Wealth Select and Cirilium Active ranges in the second and third quarter.
"Our strategic plans are progressing well with our major migration of assets from our existing platform to our new platform confirmed with advisers and clients to complete in the last weekend in November.
"Our capital return programme remains on track, we continue to control costs tightly and current trading continues to be in line with our expectations."