Print this article

Quilter Posts Positive First Quarter Financial Results In 2024

Amanda Cheesley

25 April 2024

This week has posted core net inflows of £810 million ($1,007 million) for the first quarter of 2024, bringing its AuMA to £111.6 billion at the end of March 2024, a 5 per cent rise since the end of 2023.

This reflected improved net inflows and higher equity markets, partially offset by rising bond yields in the quarter which reduced the market value of bond portfolios, the firm said in a statement. Core net inflows were about double the prior year’s level. Quilter’s adjusted profit for 2023 increased by 25 per cent £167 million, the firm added.

The largest contributors to the rise in flows over the three-month period were from the Quilter platform, with £1 billion inflows, up 23 per cent, and the highest level since 2018. The independent financial advisors (IFA) channel also saw net inflows climb 400 per cent to £432 million, from £83 million in the first quarter of last year.

In the high net worth segment of the business, despite outflows remaining elevated, in line with industry peers, the segment increased gross and net flows by 24 per cent and 33 per cent respectively versus the first quarter of 2023, the firm said. Persistency levels in the quarter also remained broadly stable at 90 per cent in the high net worth segment and 89 per cent in the affluent segment.

In addition, a skilled person has been appointed to review the Quilter network’s ongoing advice service, following discussions with the Financial Conduct Authority (FCA). This aims to determine whether the Appointed Representative (AR) firms have met their ongoing servicing obligations to customers and, if not, they should remediate customers to the extent appropriate, the firm said. Quilter first announced that it would review its networks' ongoing advice service last month, but in its results this week it said this review will be conducted shortly by a skilled person, after talks with the FCA.

The move comes after the regulator requested data from the 20 largest advice firms about their ongoing advice service.

“We are pleased to report that our first quarter net flows are running at double the level experienced last year, reflecting the momentum in our business, actions we have taken and tentative signs of improving market sentiment,” Steven Levin, chief executive officer of Quilter, said. “The Quilter channel continues to drive strong flows in both our high net worth and affluent segments.”