Quilter, the UK investments and wealth management group listed on the JSE and London Stock Exchanges, has reported exceptional third-quarter performance with net inflows of £1.4 billion (R32.1bn), significantly outpacing previous quarters.
Despite traditionally slower summer months, both High Net Worth and Affluent segments show robust growth, with Platform net inflows hitting a record £1.5bn, the group said in a trading statement yesterday.
CEO Steven Levin said: "Both of our segments contributed to a significantly improved outcome from an already strong first half base."
The third quarter net inflows were markedly higher than the strong first and second quarter levels of £810 million and £923m respectively.
Group assets under management and administration (AuMA) increased by 2% to £116.2bn by the end of September, reflecting net inflows and higher market levels, partially offset by Sterling appreciation.
Core third quarter net inflows of £1.51bn represented 5% of opening AuMA on an annualised basis.
The High Net Worth segment sustained improvements in new business momentum, with outflows easing from recent elevated levels. Gross flows increased to £817m, compared to £775m and £757m in the first and second quarters respectively.
Lower outflows led to third quarter net inflows of £284m, a significant improvement from the £116m net outflow in the third quarter of 2023.
The Affluent segment delivered another strong quarter, with gross inflows up 50% year-on-year to £3.3bn Lower outflows resulted in third quarter net inflows of £1.32bn, compared to £151m in the third quarter of 2023.
The strength of the Platform proposition was evidenced by increased business volumes:
Quilter channel gross inflows and net inflows onto the Platform increased by 22% and 31% respectively year-on-year.
IFA (independent financial advisor) channel gross inflows onto the Platform increased by 76% year-on-year.
Net inflows increased by £1bn on the comparable period to £821m (Q3 2023: £187m net outflow).
Levin highlighted the continued success of WealthSelect, Quilter's market-leading MPS (managed portfolio service), which is building on its 10-year track record of outperformance.
However, he said that the upcoming UK Budget has introduced an unwelcome degree of uncertainty to the market.
“Given the importance of a stable tax and regulatory framework for individuals to plan their financial future with confidence, we believe any meaningful changes proposed to the structure of UK pensions and savings should only be implemented after an appropriate period of industry-wide consultation,” he said.
“Additionally, any changes should incorporate transitional arrangements, as has been the general practice to date,” he added.
In March, the group committed to a review of data and practices across the Quilter Financial Planning network of representative firms. A person was appointed to do this work in June, and an update on the outcomes of this work were expected to be released by the group in early 2025.
This strong third quarter performance positions Quilter well in the competitive UK wealth management market, despite potential regulatory challenges on the horizon. The company's ability to attract significant inflows across both its High Net Worth and Affluent segments demonstrates its robust market position and effective growth strategies.
BUSINESS REPORT