17th Apr 2019 09:21
LONDON (Alliance News) - Wealth manager Quilter PLC on Wednesday said net client cash flow declined in the first quarter of 2019, after a particularly strong 2018, while assets under management grew as a result of market performance.
Net client cash flow for the three months to March 31 totalled GBP500.0 million, excluding Quilter Life Assurance, down 17% from GBP600.0 million in the fourth quarter of 2018.
Quilter said first-quarter net client cash flow was "resilient in the context of the challenging market conditions" but the fourth quarter of 2018 had been "particularly strong for both gross and net flows".
Assets under management and administration, however, increased 5.1% to GBP114.9 billion on March 31 from GBP109.3 billion on December 31 due to "the rebound in equity markets and strong investment performance" for the period, notwithstanding a "challenging flow environment".
This result was also ahead of the GBP111.6 billion AuMA figure recorded the year before.
Gross sales and outflows in all of Quilter's businesses were similar to the final 2018 quarter.
Quilter's expected loss of a GBP200 million portfolio within its Quilter Cheviot unit is not reflected in the first quarter of 2019 but will be booked in the second quarter, it said.
Outflows totalling GBP900.0 million within Quilter Life Assurance included GBP600.0 million relating to the deliberate run-off of its institutional book, meeting expectations, Quilter added.
Chief Executive Paul Feeney said: "As indicated at our full year results, net client cash flows have continued to be affected by the challenging markets. However, we continue to be encouraged by the resilience of integrated flows which have remained robust during this period, and the high level of customer asset retention across our businesses which was broadly stable on 2018 at 89%.
"While near-term headwinds remain, this demonstrates our clients and their advisers value Quilter's integrated advice-led model, and continues to be supportive of our operating margin and revenue outlook."
"To support our continued strategic progress, we were delighted to announce the recommended cash offer for Lighthouse Group. The scheme document was posted to their shareholders earlier this week and we look forward to their advisers joining the Quilter family, and helping to secure our position as the best place to go for trusted financial advice in the UK."
Shares in Quilter were down 1.5% at 154.28 pence in London on Wednesday morning and down 1.1% in Johannesburg at ZAR28.09.
Related Shares:
Quilter