DURBAN – Services firm Quilter plc yesterday in a trading update reported an outflow of £600 million (R11.39 billion) in client money in the third quarter to September mainly attributed to losses from its Quilter Cheviot unit following the departure of investment managers.
This had resulted in the total outflows of £1.4bn in 2019.
Quilter chief executive Paul Feeney said: “As indicated earlier this year, we expected this year to be challenging for net client cash flows, reflecting an uncertain political and economic backdrop coupled with some Quilter-specific factors, in particular, the loss of a certain cohort of investment managers in Quilter Cheviot last year.”
However, Feeney said gross flows within Quilter Cheviot in the third quarter were up year-on-year, partially reflecting the contribution from recent investment manager hires.
“Notwithstanding the challenging backdrop, we continue to be encouraged by resilient gross flows and high levels of customer asset retention across our businesses, which were broadly stable on 2018, excluding the impact of the Quilter Cheviot outflows. While near-term headwinds remain, this demonstrates that our clients and their advisers value Quilter’s integrated advice-led model, and this continues to provide support to our revenue and operating margin outlook,” he said.