QUILTER plc, the UK-based advice, investments and wealth management company, said that the outbreak of conflict in Ukraine had created uncertainty in its markets in the quarter to end-March 31 after strong early net funds flow momentum.
The company said in a trading statement yesterday, however, that gross and net flows remained resilient, despite this uncertainty, and net inflows of £1 billion (about R19.65bn) were in line with that of the same period in 2021, and this represented 4 percent of opening.
“Net inflows in the first two months of the year were comfortably ahead of the comparable period in 2021, but the invasion of Ukraine in late February dampened investor sentiment for most of March. Our resilient overall performance throughout this period has underlined both the strength of our advice-based model and demonstrated the potential of our transformed busines,” CEO Paul Feeney said in a statement.
Assets under Management and Administration (AuMA), in line with 4 percent AuAM at the same time in 2021.
AuMA came to £107.2bn at the end of March 2022, a decline of 4 percent from December 31, 2021. Average AuMA for the first quarter of £107.6 billion was modestly ahead of the 2021 full year average of £105.3bn.
Annualised net inflows from Quilter channels were 18 percent and 16 percent of opening AuMA in Affluent and HNW (high net worth) segments, respectively.
“I am delighted our HNW segment maintained the strong momentum on which it finished 2021. Quilter Investors’ net inflows were impacted by previously flagged fund closures of £61 million during the quarter Q1 2021: £83 million,” said Feeney.
Adviser productivity had also continued to improve, with annualised gross flow per adviser up 14 percent to £2.5m.
Feeney said markets might remain challenging, but the company was focussed on execution and was well positioned to take advantage of opportunities ahead. “We have built a business for the long-term,” he said.
Quilter’s share price fell 1.65 percent to R27.94 on the JSE yesterday morning, with the share price down some 13 percent over a year. The rand has appreciated some 9 percent against the UK pound since the start of the year.
The company will hold its annual general meeting on May 12, where chairperson Glyn Jones will step down. He will be replaced by Ruth Markland, who will be interim chairwoman until a replacement for Jones was found.
BUSINESS REPORT