Quilter’s interim assets under management fall amid global equity rout

Quilter chief executive Paul Feeney says operating conditions in the first six months of 2022 have been challenging. Picture: David Ritchie African News Agency (ANA)

Quilter chief executive Paul Feeney says operating conditions in the first six months of 2022 have been challenging. Picture: David Ritchie African News Agency (ANA)

Published Aug 11, 2022

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Quilter plc, the UK-based advice, investments and wealth management company, flagged a 12 percent decrease in interim assets under management (AuMA) as global equity markets experienced one of the worst periods of negative performance in recent years.

In its interim results for the six months ended June 30, released yesterday, the group reported the AuMA to be at £98.7 billion (R1.9 trillion) compared to £111.8bn from December 31, 2021, due to adverse market movements of £14.5bn.

The group also reported Quilter Investment Platform net inflows of £1.6bn, while in the first half of 2021 they were £1.8bn.

The company said this reflected an industry-wide slowdown in new client flows during the second quarter.

The group said it achieved Quilter High Net Worth net inflows of £0.5bn, while net outflows were £0.6bn.

An interim dividend was kept at 1.2 pence per share due to the outlook being uncertain.

Chief executive Paul Feeney said: “Operating conditions in the first six months of 2022 have been challenging. Global equity markets have experienced one of the worst periods of negative performance in recent years and traditional 60:40 multi-asset portfolios have had their largest negative year-to-date return on record.

“Against this backdrop, we delivered a 9 percent increase in our adjusted profit in the first half of 2022. Our focus remains on managing our business towards the targets set out at our Capital Markets Day last November, although an absence of an improvement in market levels and investor sentiment over the remainder of this year and 2023 may impact on the timing of delivery,” he said.

Quilter reported an improved operating margin of 20 percent, reflecting stable revenues and a reduction in expenses, and tight control of costs despite the inflationary environment and the return to more normalised investment spend post-pandemic.

The group also flagged flat revenues, and cost discipline drove a 9 percent increase in adjusted profit before tax to £61 million, compared to the first half of 2021.

Adjusted diluted earnings per share decreased by 5 percent to 3.7 pence, reflecting a more normal tax rate, as a result of the non-repetition of a deferred tax credit in the first half of 2021 partially offset by a reduced share count following the completion of its capital return programme, it said.

Quilter’s share price fell by almost 5 percent to R22.89 on the JSE yesterday at 5pm, with the share price down some 41 percent over a year.

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