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Quilter predicts 'modestly lower' net flows for end of 2022

Quilter predicts 'modestly lower' net flows for end of 2022

Quilter has said its net flows for the end of last year are expected to be "modestly lower" compared to earlier in the year, but that they will remain positive.

Like many investment platforms, Quilter has tracked a decline in net inflows in recent quarters after both bond and equity values declined over the summer.

At the end of September, net inflows had fallen £300mn compared to the end of June shaving 2 per cent off the firm's assets under management and advice, which fell from £98.7bn to £96.9bn.

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In an update yesterday (January 10), Quilter said it was in the process of preparing its year-end financial statements.

"Based on preliminary (unaudited) figures, the group expects to report full year assets under management and under administration broadly similar to the Q3 2022 position of £96.9bn (31 December 2021: £111.8bn), the decrease during the year is due to positive net flows offset by adverse market movements," the update read.

"Retention rates remain stable and gross flows for the final quarter remain resilient while reflecting the normal seasonality of the business. Therefore, overall, Q4 2022 net flows are expected to be modestly lower than Q3 2022 but remain positive."

Investment platform sales plummeted to £4.4bn in the third quarter of last year, the lowest they have been in over a decade as an uncertain economy and political instability spooked investors.

Net sales across all platforms, both advised and non-advised, have been on a downward trajectory since January, according to Fundscape's data.

They fell from £11.9bn in the first quarter to £7.8bn in the second quarter.

Between January and the end of September last year, markets wiped £105bn of assets off all platforms’ balance sheets.

But Quilter has performed better than the majority of its peers. 

Quilter topped gross sales with £1.7bn in the third quarter of last year, and its assets under management - ie, on the platform - were £64.63bn, the second highest of the UK's major adviser investment platforms.

Back in October, Quilter announced longstanding Paul Feeney would be stepping down from his role after heading up the business for 10 years.

He handed over to platform boss Steven Levin in November.

ruby.hinchliffe@ft.com