23rd Oct 2019 07:29
(Alliance News) - Quilter PLC said Wednesday its client assets increased in the third quarter of 2019, but reported outflows in net client cash due to investment manager departures within its Quilter Cheviot unit.
For the three months to the end of September, the London and Johannesburg dual-listed wealth management firm reported a net client cash outflow of GBP1.4 billion, compared to an inflow of GBP500 million in the same period the year before.
Excluding Quilter Life Assurance, Quilter still reported an outflow of GBP500 million, compared to an inflow of GBP1.1 billion a year ago.
However, assets under management and administration as at September 30 edged up 0.5% to GBP118.7 billion from GBP118.1 billion the same date the prior year, driven by a positive market performance. AUMA was up a more substantial 11% from December 31, 2018.
For the nine months to the end of September, the net client cash outflow was GBP2.3 billion, swinging from an inflow of GBP2.7 billion the year before. Excluding Quilter Life Assurance, client cash outflows came up to GBP200 million, compared with an inflow of GBP4.1 billion.
Quilter attributed the outflows to the loss of investment managers in Quilter Cheviot during 2018, as well as the loss of a quasi-institutional mandate.
"I am pleased that we have seen an 11% increase in AuMA from continuing operations over the course of 2019. 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," said Chief Executive Officer Paul Feeney.
"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," Feeney added.
By Dayo Laniyan; [email protected]
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