Quilter AUM stabilises but flows drop 83%

Quilter AUM stabilises but flows drop 83%
Quilter chief executive, Steven Levin

Quilter’s assets under management and administration have rebounded with a 3 per cent quarterly increase in December 2022, but the firm's flows fell by 83 per cent compared to the previous year.

At the end of December 2022, AUMA stood at £99.6bn up from £96.9bn in September 2022, according to a trading statement published by Quilter this morning (January 25).

The asset manager attributed the results to a “modest pick-up in equity markets and slightly lower bond yields in the final quarter”.

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Net inflows for the period were down significantly on the previous quarter at £159mn compared to £236mn three months earlier.

Quilter said this reflects the normal seasonality of the business.

On an annual basis, net inflows were down from £950mn in the final quarter of 2021 and £1.01bn in Q3 2021.

Quilter chief executive Steven Levin said although net flows for 2022 were “below the level we want to achieve”, he felt the year was finished on a “solid note despite the usual seasonal slowdown”.

Having previously managed Quilter’s £202mn replatforming, Levin became chief executive at the asset manager in October last year after Paul Feeney stepped down following 10 years in the role. 

“I was particularly pleased with the performance from our high net worth segment which has continued to deliver a robust performance, with good flows from the Quilter channel offsetting a slowdown in IFA flows,” Levin added.

Amid rising inflows for the group in 2021, following the revamp of its FNZ platform, Quilter re-structured its group into a high net worth focused arm and one catering to affluent individuals.

The firm has reported net flows from its high net worth segment of £158mn for Q4 2022, down from £282mn a year prior.

Levin continued: “More broadly, the Quilter channel continued to deliver consistent flows to our platform and has maintained steady productivity throughout the year.

"The level of gross new IFA flows onto our platform remains good relative to peers given the market context and overall customer drawdowns remain in-line with historical trends.”

He reasoned that net flows had been impacted by “heightened adviser consolidation across the market” and said the firm continued to grow the base of IFAs using its platform in the quarter and expects incremental flows from it to build over time.

The firm described the performance of its Quilter channel as “solid” with gross platform flows of £594mn for the quarter - down from £691mn last year.

Lower levels of new business meant total Quilter quarterly net inflows stood at £513mn, down from £584mn in Q4 2021.