LONDON and JSE-listed UK wealth management company Quilter’s fourth quarter IFA Platform gross flows increased 44% year-on-year following supportive markets into the year-end, with a contribution from net flows during the quarter.
Assets under Management and Administration (AuMA) of £106.7 billion (R2.6 trillion) at December 31 had increased by 5% on the end-September position of £101.4bn.
“In what has been a tough year across the industry, we finished 2023 on a positive note with improved fourth quarter performance relative to the third,” CEO Steven Levin said.
Fourth quarter core business net inflows of £175 million contrasted with net inflows of £242m in the same period of 2022, but was a significant improvement on the £1m achieved in the third quarter.
The Quilter channel delivered a strong quarter, resulting in full year net inflows as a percentage of opening AuMA, at 15% in the high net worth (HNW) segment, and 10% in the affluent segment.
Full year 2023 gross inflows increased 16% in the HNW segment and 12% in the affluent segment. Fourth quarter inflows in the affluent segment were 8% ahead of the average level in the first three quarters of 2023.
Fourth quarter gross inflows in the HNW segment were consistent with the prior quarter levels.
“2023 saw a lot of focus on strategic positioning of businesses within a consumer duty context. We remain confident our open and unbundled business model leaves us well positioned for the current environment,” said Levin.
He said the strength of their platform proposition and strategy was demonstrated by the increased levels of new business in the face of tough market conditions.
Full year 2023 Quilter channel gross and net flows onto the Platform increased by 15% and 14%, respectively.
IFA channel gross inflows onto the Platform in the fourth quarter increased 44% to £1.4bn (£1bn) and by 7% on a full year basis. This improved level meant the IFA channel returned to net inflow during the quarter.
HNW clients’ continued portfolio repositioning given the macro environment led to an outflow in the IFA/directly sourced channel, with this partially offset by net inflows in the Quilter channel.
Fourth quarter non-core net outflows of £119m were consistent with third quarter levels.
“Our focus on reshaping our Advice business is demonstrating clear results, with Quilter channel gross sales per Quilter Adviser increasing 21% on the prior year comparative period,” said Levin.
The full year results are expected to be published on March 6.
Quilter’s share price rose 3.2% to R24.47 on the JSE yesterday afternoon, well up on the 0.14% increase in the FTSE/JSE Financials Index at the same time.