UK's Quilter grows assets but flags inflation worries
By Muvija M
Aug 11 (Reuters) - British wealth manager Quilter reported a jump in assets under management on Wednesday but sounded a note of caution over inflation and volatility in financial markets linked to U.S.-China tensions.
Quilter earned 56 million pounds on an adjusted basis for the six months to June, 19% more than in the first half of last year, and hiked half year dividends to 1.7 pence per share from 1 pence.
But on a statutory basis, the company plunged to a 21 million pound ($29.01 million) loss compared to a profit of 13 million pounds. It cited the impact of rising equity markets on policyholder tax accounting recognition.
"We have experienced bouts of volatility reflecting uncertainty over the heightened U.S.-China tensions, coupled with concerns over the direction of inflation and interest rates," Quilter said in a statement.
"This leaves us cautious on expectations of further substantial near-term market appreciation."
Quilter shares, which have lagged the wider midcap index so far this year, edged over 3% lower by 0755 GMT, underperforming a flat bourse.
The company, a spin-off of Anglo-South African insurer Old Mutual, said assets under management and administration grew by 8% to 104.8 billion pounds at end-June 2021 compared to the end of 2020. Net inflows in the first half were 2 billion pounds.
"After the broader challenges and market volatility of 2020, the first half of 2021 represented a welcome return to more normal market conditions, with improving inflows and rising equity markets," Quilter Chief Executive Paul Feeney said in a statement.
Following the completion of an upgrade to its largest business, Quilter Investment Platform, the company pointed to early signs of increased flows after the full migration of advisers and customers to the new platform.
($1 = 0.7239 pounds) (Additional reporting by Carolyn Cohn in London, editing by Barbara Lewis and Kirstin Ridley)
