Quilter expects to report full-year assets under management (AUM) and under administration broadly similar to that reported for the third quarter of 2022.
The UK discretionary investment management firm’s third quarter AUM position was £96.9bn, compared with £111.8bn at end-December 2021, according to a filing to the JSE’s stock exchange news service late on Monday. Net flows for the fourth quarter of 2022 are expected to be “modestly lower” than those reported in the third quarter, though they would remain positive, it added.
“The decrease during the year is due to positive net flows offset by adverse market movements,” said Quilter, which is preparing its year-end financial statements. “Retention rates remain stable and gross flows for the final quarter remain resilient while reflecting the normal seasonality of the business.”
Asset managers worldwide struggled to grow their asset pools in 2022 as markets were roiled by a combination of the fallout from the Ukraine war and aggressive monetary tightening by central banks to rein in rampant inflation. The resultant market turmoil saw both equity values and bonds slump across the world, resulting in a drop in the value of assets overseen by the global asset management industry.
Quilter also said it has mandated JPMorgan Cazenove as sole structuring agent and BofA Securities, Citi and JPMorgan Cazenove as joint bookrunners to arrange a series of fixed-income meetings. It plans to issue a new sterling-denominated Tier 2 bond, subject to market conditions, the proceeds of which will be used for general corporate purposes and the refinancing of a £200m 4.478% fixed-rate note due in 2028.
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