Quilter reorganises business amid rising inflows

Quilter reorganises business amid rising inflows

Quilter has re-structured its group into a high net worth focused arm and one catering to affluent individuals. 

Speaking at Quilter's capital markets day today (November 3), chief executive Paul Feeney said the core proposition would be different for each segment.

The £27.6bn HNW arm will be run by Andy McGlone, chief executive of Quilter Cheviot, and will focus heavily on the group's DFM services, whereas the £80.9bn affluent arm will be made up of three businesses, Quilter Financial Planning, the Quilter platform and Quilter Investments. 

“In the high-net-worth segment, clients value a more bespoke discretionary managed proposition,” Feeney said. “It’s a dual expert approach – an adviser, either one of our private client advisers, or an IFA, plus an investment manager. 

“Conversely, in the affluent segment, where we serve far more clients, it’s a single expert proposition; either one of our advisers or an IFA plus a more unitised portfolio approach.”

McGlone said by bringing Quilter Private Client Advisers, the group’s high net-worth business, into its core business, clients will be offered a choice of financial advice, investment management or both. 

“By doing so, we see a real opportunity to drive faster growth,” he said.

The affluent segment meanwhile will be led by Steven Levin, chief executive of Quilter Investors and the Quilter platform, who said: “Each of these businesses are great at what they do, but they’re not as efficient as they could be and neither have they been truly integrated. 

“We are now bringing them together to create a more cohesive business, focused on helping both our customers and their advisers achieve their goals.”

Quilter’s platform has seen inflows of £2.7bn in the nine months to September, up 142 per cent on the same period in 2020. 

Inflows from advisers were up five-fold in the nine months , at £1.4bn, according to the firm's Q3 results released today.

The firm finished its final migration to its new platform in February this year, with Jeremy Mugridge, head of UK proposition marketing, saying the launch provided a “great opportunity” to broaden platform’s appeal.

Feeney said advisers had taken well to the new platform. 

He said: "I am delighted with the significant improvement in our third quarter net flows which were up ten-fold to £1bn from £0.1bn in 2020.

"Excellent growth in flows from our advisers has been coupled with a very substantial increase in flows from the IFA channel who have taken extremely well to our new platform."

Quilter had assets under management and administration of £108.5bn at the end of September 2021, with year-to-date inflows of £3bn - three times as much as in the same period last year when it was £1.1bn.

In the third quarter Quilter had net flows of £1bn, of which £689m came from the affluent segment and £329m came from the HNW arm.