Quilter was still experiencing subdued levels of net client cashflow (NCCF) in the third quarter of 2018, although it did show a slight increase from Q2 this year.
The advice and wealth management company reported that NCCF was down by more than 61% in the third quarter of 2018 to £500m ($649m, €566m) compared to £1.3bn in the same period in 2017.
Similarly, gross sales dropped to £3.4bn from £4.1bn and the total integrated net flows (excluding Quilter Life Assurance) fell from £1.4bn in Q3 2017 to £0.9bn for the three months ending 30 September 2018.
Lack of investor confidence
Quilter chief executive Paul Feeney attributed the inflow drop to volatility in the investment market and uncertain geopolitical landscapes causing lack of confidence in investors.
He said: “Year-to-date flows across the market are down 55% on the comparable period, according to the Investment Association. Against this backdrop, I am pleased to report continued solid performance in NCCF of £1.1bn (excluding Quilter Life Assurance) in the third quarter, marginally ahead of the second quarter.
“Worthy of note is the more cautious approach both we and the advisers who use our platform have taken towards defined benefit to defined contribution pension transfers. These totalled £300m in the third quarter of 2018 versus £600m in the comparable period of 2017.”
Rise in AUMA
Feeney continued: “Gross flows into Quilter Investors of £4.3bn year to date were up 10% on a year earlier and gross sales within Quilter Wealth Solutions, our UK platform business, remained strong at £6.1bn year to date, down 9% on the prior year despite the factors referenced earlier.”
The results also showed an increase in assets under management and administration (AUMA) to £118.1bn compared to £114.4bn at the end of 2017.
A similar result was seen between Q2 and Q3 2018 with AUMA increasing to £44.3bn from £43.7bn.
|AUMA 30 June 2018||AUMA 30 Sept 2018||% change|
|Quilter Financial Planning||£1.2bn||£1.1bn||-8.4%|
|Advice & Wealth Management||£43.7bn||£44.3bn||+1.3%|
|Quilter Wealth Solutions||£52.3bn||£53.4bn||+2.1%|
|Quilter Life Assurance||£14.5bn||£14bn||-3.5%|
|Elimination of intra-group assets||£13.2bn||£13.2bn||0%|
Source: Quilter plc