Quilter toasts record inflows as financial advice push pays off
Quilter has posted record net inflows as the wealth management firm toasts the success of capturing customers seeking financial advice.
Total assets under administration and management (AUMA) jumped 25 per cent to £157.4bn in the first half of the year.
The hike was driven by a 32 per cent increase in core net inflows to £6bn, up from £4.5bn the prior year, after an uptick in customer activity across both its customer channels.
Revenue inched up five per cent to £379m, after higher management fee revenue was partially offset by lower investment revenue generated on shareholder funds. Profit before tax reached £112m.
The wealth manager increased its interim dividend to 2.1p per share and completed £68.4m of its £100m share buyback programme.
Channel performance
The FTSE 250 group’s affluent segment posted £1.7bn in net inflows, up from £1.3bn the prior year, reflecting the “strength and distribution capabilities of our advice business”. AUMA increased 13 per cent to £121.2bn.
Its independent adviser channel reported a 27 per cent rise in net inflows to £3.7bn, as it grew its market share in the retail advice market.
The firm’s high net worth segment attracted £552m in inflows, while asset retention remained broadly flat at 92 per cent.
Steven Levin, chief executive officer, said: “Our strategy allows us to deliver wealth solutions to UK households at scale or at a bespoke, individual level. In either case these outcomes are built around the personal nature of adviser-client relationships.”
Burnham’s Budget
Quilter plans to attract a greater market share through broadening its client offerings and lowering average cost. It anticipates its investment in technology and AI tools to assist in bringing down client costs.
The is also looking ahead to the Autumn Budget, as it braces for the outbreak of speculation which has hit the market in the run up to the Chancellor’s speech in recent years.
Levin said: “Our message to policymakers is clear. If the UK is to increase household participation in long-term saving and investment, individuals need a stable policy environment that allows them to plan for the future with confidence
“Major changes to long-term savings policy should be developed through a clear consultation process.”