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Net flows down 90% at Quilter

As sale of life assurance business confirmed


Net client cash flows (NCCF) at Quilter plummeted to £300m ($364.6m, €328m) in the first half of 2019, down from £3bn during the same six-month period in 2018.

Gross sales fell 26% across the group to £6bn, down from £7.9bn a year ago.

Assets under management/administration (AuMA), however, rose 8% to £118.4bn.

In good company

A spokesperson for Quilter told International Adviser: “Our gross flows remain sold at £6bn but there were some exceptional outflows in Quilter Cheviot in H1, due to a group of investment managers leaving and a mandate loss.

“This combined with our natural attrition rate reduced the net flows.”

Quilter is not the only company to report depressed flows, however, with Schroders reporting net outflows of £2.4bn.

The UK asset manager blamed the current “risk off” environment.

Impact of departures

“We experienced higher outflows in Quilter Cheviot following the resignation of some investment managers during 2018, putting pressure on net flows,” said Quilter chief executive Paul Feeney.

“During the first half, we recorded outflow requests totalling £600m from clients looking to follow their investment managers who departed last year.

“We expect this pressure to continue at a similar level through the remainder of 2019.”

Additionally, there was the previously disclosed loss of a quasi-institutional £200m mandate late in the second quarter.

“In addition, due to market uncertainty, we have experienced a lower level of new gross flows onto our platform from both our restricted advisers and independent financial advisers.

“This has led to lower levels of flow into Quilter Wealth Solutions and Quilter Investors with the combination of these factors leading to lower net flows,” Feeney said.

International view

The “modest” NCCF of £100m reported by Quilter International (which is still officially branded Old Mutual International) was “broadly in line with the prior year”.

Feeney said that it reflects the group’s strategy of repositioning its business to have “deeper roots in fewer markets”.

Gross sales were down 11% to £800m, while AuMA rose by 5% to £20.1bn.

Sale of closed book

In addition to the financial results, Quilter confirmed that it has agreed to sell Quilter Life Assurance to ReAssure for £425m.

The sale was first floated in early July.

The business is predominately closed book, made up of products sold over the last 30 years, and does not include Old Mutual Wealth’s open protection products.

The deal is subject to regulatory approval.


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