Quilter plc (LON:QLT) has announced its first quarter 2025 trading statement.
Highlights:
· Group Assets under Management and Administration (“AuMA”): £119.6 billion at end March 2025, broadly unchanged from the year-end level of £119.4 billion. This reflects reported net inflows of 7% (annualised) of opening AuMA, offset by market declines and Sterling appreciation during the quarter.
· First quarter core net inflows of £2,276 million, represented 8% (annualised) of opening AuMA (Q1 2024: 3%). First quarter core net inflows were 181% higher than the comparable period in 2024 and were 16% higher than the then record fourth quarter 2024 level.
o In the High Net Worth segment, new business momentum was solid:
– Gross inflows of £765 million were broadly in line with the recent quarterly run-rate.
– Net inflows of £119 million (Q1 2024: £93 million), represented 2% (annualised) of opening AuMA.
o The Affluent segment delivered another strong quarter, with:
– A 42% year-on-year increase in gross inflows to £4,190 million (Q1 2024: £2,956 million).
– Lower year-on-year outflows contributed to a 179% increase in net inflows of £2,198 million (Q1 2024: £788 million), representing 10% (annualised) of opening AuMA.
The strength of our Platform proposition continues to be demonstrated by significantly higher business volumes:
– First quarter Quilter channel gross and net inflows onto the Platform increased by 12% and 15% respectively year-on-year.
– IFA channel gross inflows onto the Platform increased by 63% year-on-year. IFA channel net inflows of £1,573 million were significantly higher than the comparable period (Q1 2024: £423 million).
– Record quarterly net inflows of £2,293 million during the first quarter, representing 11% (annualised) of opening AuMA versus £1,048 million or 6% of opening AuMA in the first quarter of 2024.
· Persistency levels in the quarter were broadly stable at 91% in both segments.
· Productivity: Quilter channel annualised gross sales per Quilter Adviser were £3.4 million in the first quarter, modestly higher year-on-year.
| Quilter plc: Three months ended 31 March 2025 | ||
| Quilter plc, unaudited | Q1 2025 | Q1 2024 |
| AuMA: Reported (£bn) | 119.6 | 111.6 |
| Of which are administered on the UK Platform | 86.6 | 77.8 |
| Of which are administered on external platforms | 5.8 | 6.8 |
| Of which High Net Worth | 28.7 | 28.1 |
| Gross flow: Reported (£m) | 4,895 | 3,646 |
| Net inflow: Core (£m) | 2,276 | 810 |
| Net inflow: Reported (£m) | 2,180 | 707 |
| Productivity: Quilter channel gross sales per Quilter Adviser (£m, annualised) | 3.4 | 3.3 |
Steven Levin, Chief Executive Officer of Quilter plc, commented:
“I am pleased with our first quarter flow performance which has continued the momentum seen in late 2024. These results continue to demonstrate the strength of the Quilter dual channel distribution model. In Affluent, our Platform flows reached 11% (annualised) of opening AuMA and in High Net Worth, the net inflows as a percentage of opening assets were 2%, in line with the 2024 out-turn.
“Market indices weakened during the first quarter, with the impact of this broadly offsetting our net inflow performance. Thus far in the second quarter we have seen significant volatility across all asset classes, as bond and equity markets have reacted to proposed US tariffs. As a result, the outlook for market levels and interest rates is more uncertain than at our Full Year results just over a month ago. Our most recent estimate of AuMA (at 17 April) is around 3% below the quarter end level which, if sustained, would provide a headwind to 2025 revenues and profitability.
“We have successfully managed our business through previous periods of market turbulence. Our advisers and investment managers remain highly engaged with our clients, and it is during volatile markets that the value of financial advice becomes most apparent. The assets we manage are largely long-term focused and, with the majority of our new business arising from asset consolidation, early second quarter indications point to a degree of resilience in flows. The structural growth opportunity in the UK wealth market remains and we continue to focus on our strategic initiatives and efficiency programmes. We remain confident that Quilter is well placed to navigate these uncertain macro challenges.”
