Quilter specialise in the creation and management of multi-asset investment portfolios. Picture: Henk Kruger/Independent Newspapers
UK-based wealth manager Quilter’s share price shot up 6% on the JSE after its strongest quarterly financial performance for the year saw Assets under Management and Administration (AuMA) rise by 7% in three months to December 31.
Record core net inflows of £5.2 billion (R119bn) in 2024 from the company that separated from Old Mutual in 2016 were reported, with the fourth quarter inflow at £2bn, Quilter said in a trading statement Wednesday.
Record quarterly Platform net inflows of £1.9bn represented 9% of opening AuMA of the company that has paid out regular dividends at an average growth rate of 12.5%. The share traded at R36.85 Wednesday afternoon, 55% higher than a year ago.
“Our performance accelerated with each quarter incrementally stronger than the immediate prior quarter. Fourth quarter core net inflows of £2bn were higher than the aggregate of the first and second quarters, both of which benefited from tax year-end related activity. This was despite the budget-related turmoil and uncertainty,” CEO Steven Levin said.
AuMA of £119.4bn increased 3% in the quarter, reflecting the net inflows, coupled with broadly neutral markets, and a positive contribution from Sterling weakness.
Fourth quarter net inflows were 30% higher than the then-record third quarter 2024 level, and significantly ahead of the first half 2024 quarterly run-rate.
"Our business generated very strong inflows in 2024, as strategic initiatives we have put in place over the last few years have delivered results,” said Levin.
In the High Net Worth segment, new business momentum remained strong. Ahead of the UK Budget on October 30, some asset repositioning was experienced as clients accelerated asset disposals ahead of expected changes in capital gains tax and made higher generational wealth transfers as part of inheritance tax planning.
The gross inflows of £767m were broadly in line with the recent quarterly run-rate. Despite higher outflows in October ahead of the Budget, fourth quarter net inflows of £208m (£76m net outflow at the same time 2023) represented 3% of opening AuMA.
The Affluent segment delivered another strong quarter, with year-on-year increases in gross inflows of 58% to £3.92bn. Lower year-on-year outflows contributed to fourth quarter net inflows of £1.83bn.
The strength of the Platform was demonstrated by significantly higher business volumes: Fourth quarter Quilter channel gross and net inflows onto the Platform increased by 22% and 32% respectively year-on-year.
IFA (independent financial advisor) channel gross inflows onto the Platform increased 91% year-on-year. Net IFA inflows of £1.26bn were significantly higher than the £6m in the comparable period.
In March, a review was announced of historical data and practices across the Quilter Financial Planning network of appointed representative firms. A progress update on this was expected with the preliminary results on March 5, 2025.
Levin said 2024 demonstrated the strength of their two scale distribution channels.
“We are the UK's largest discrete adviser Platform and, we believe, the fastest growing amongst our larger company platform peers. Our scale and distribution reach makes us uniquely positioned both to serve our customers well and to benefit from the secular growth opportunity that the UK Wealth market offers," he said.
BUSINESS REPORT