DURBAN - QUILTER plc yesterday reported a 26 percent increase in assets under management and administration (AuMA) in the first quarter to the end of March, boosted by improved net flows, positive investment performance and markets.
The UK-based wealth manager saw its AuMA climbing to £119.9 billion (R2.39 trillion) during the quarter, up from £95.3bn compared with the same quarter last year, and up 2 percent compared with the quarter to the end of December.
Chief executive Paul Feeney said he was delighted with the significant improvement in both their gross flows and net flows in the first quarter of this year, with the UK business, excluding Quilter International, delivering annualised net client cash flow of 5 percent of opening AuMA 2021, led by new Quilter Investment Platforms.
Quilter Investment Platform delivered a 29 percent increase in gross sales for the quarter to £2.2bn and exceeded monthly sales of £1bn for the first time.
“I have often described our platform as the beating heart of our business, and the opportunity it provides as being transformative for Quilter. It is therefore particularly pleasing to see a meaningful pick-up in the rate of platform sales,” Feeney said. The group reported a 15 percent increase in first-quarter gross sales to £3.8bn and a 240 percent surge in net inflows to £1.2bn.
Quilter announced at the beginning of the month that it had set its sights on the UK market as its core business following a strategic review of its operations, and it sold its Quilter International business for about £483 million.
The group sold the former Old Mutual International business to Utmost after the Isle of Man business was put under a strategic review in December last year, in a move that shocked the industry and investors.
Feeney said the company was pleased with shareholder feedback and market reaction to the proposed sale of Quilter International. “We expect the formal Class 1 circular to be mailed to shareholders in the coming weeks, and we look forward to receiving shareholder approval for the sale at a general meeting of the company to be scheduled in June,” he said.
Quilter Cheviot increased its net inflows to £200m in the quarter compared with £100m reported last year, reflecting better retention and stable gross sales. Feeney said the improvement in net flows in Quilter Cheviot was pleasing, and it was supported by improved retention, as well as broad stability inflows at Quilter Investors and Quilter International.
“With Quilter Investors having delivered a much-improved one-year investment performance in the period to end March, we are anticipating this, combined with well-established long-term performance, will drive an increase in gross flows in the coming months,” he said.
Quilter shares closed 1.94 percent lower at R32.38 on the JSE yesterday.
BUSINESS REPORT