29th Jan 2020 09:14
(Alliance News) - Quilter PLC on Wednesday said it managed to generate net client cash inflow for all of 2019, reversing the net outflow seen in the first three quarters of the year but lagging behind the previous year.
The financial services firm was spun out of Anglo-South African financial services firm Old Mutual PLC in June 2018 and is dual-listed in London and Johannesburg.
Net client cash inflow for 2019 as a whole was GBP300 million, a significant improvement over the net outflow of GBP200 million recorded in the nine months to September. However, this was still far below 2018's annual net client cash inflow figure of GBP4.7 billion.
For the fourth quarter alone, net client cash inflow was GBP500 million, down from GBP600 million a year before.
In addition, Quilter's gross sales of GBP12.3 billion in 2019 were down 13% from GBP14.2 billion the year before.
Assets under management and administration on December 31 totalled GBP110.4 billion, 13% higher than the year-ago figure of GBP97.7 billion.
All figures exclude Quilter Life Assurance, which Quilter agreed to sell to ReAssure Group PLC for GBP425 million in cash in August 2019.
Chief Executive Paul Feeney said: "2019 was a good year for market performance but a challenging year for net client flows. We were pleased to finish the year in a positive position. Net inflows of GBP300 million for the year represented a sharp turnaround from the net outflow of GBP200 million for the nine months to end-September.
The company is currently undertaking a transformation of its platform and is migrating UK clients in February.
"We are pleased that the initial migration of customers onto our new platform is currently planned for the weekend of 22/23 February 2020. Our advisers and clients who are involved in this process have been notified accordingly. Our new UK platform will be transformational for Quilter - it has taken time to get to this point and we are excited about the ability to drive further business growth once we have fully migrated onto the new platform by the end of this summer," said Feeney.
In London, Quilter's shares were up 2.9% at 165.10 pence, while in Johannesburg they were 4.1% higher at ZAR31.29.
By Anna Farley; [email protected]
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