Quilter, the UK wealth manager, reported a rise in assets under management (AUM) to £119.1 billion in the first quarter of 2025, up from £116.3 billion at the end of 2024. The company also highlighted increased cost pressures and reiterated its call for a stable policy environment to support long-term investment.
Strong Client Inflows and Market Gains
The growth was driven by net client inflows of £1.6 billion and positive market movements of £1.2 billion. Quilter's platform business saw net inflows of £1.3 billion, while its advisory arm attracted £0.3 billion. The firm's discretionary fund management (DFM) business also contributed, with assets rising to £54.2 billion.
According to Quilter's chief executive, Steven Levin, the results demonstrate the resilience of the company's diversified business model. "Our continued focus on delivering excellent client outcomes and improving efficiency has allowed us to grow despite a challenging market backdrop," he said.
Cost Pressures and Policy Concerns
However, Quilter warned that cost inflation remains a headwind. Operating costs increased by 5% year-on-year, driven by higher regulatory costs and investment in technology. The company also noted that the UK's uncertain policy environment, including potential changes to capital gains tax and pensions rules, is affecting investor confidence.
"We need a stable and predictable policy framework to encourage long-term saving and investment," Levin added. "The current volatility in the political landscape makes it difficult for both advisers and clients to plan effectively."
Impact on Advisers and Clients
Quilter's network of financial advisers has grown to 2,400, with productivity per adviser rising to £0.9 million in gross inflows. The company's focus on high-net-worth clients has helped mitigate some of the impact of market volatility, but the firm remains cautious about the outlook.
The wealth manager also highlighted the importance of technology in improving client experience. Quilter's digital platform now processes 60% of all transactions, up from 50% a year ago, reducing costs and improving efficiency.
Market Reaction and Future Outlook
Shares in Quilter rose 2.3% following the announcement, as investors welcomed the resilient performance. Analysts at Jefferies noted that Quilter's focus on cost discipline and high-quality growth should support margins going forward.
Looking ahead, Quilter expects to deliver full-year net client inflows of £6-8 billion, in line with previous guidance. The company remains committed to returning excess capital to shareholders, with a dividend policy targeting 50% of earnings.
Quilter's results come amid broader concerns about the UK economy, with inflation still above the Bank of England's target and interest rates expected to remain elevated. The wealth manager's call for policy stability echoes similar sentiments from other financial services firms, who argue that regulatory certainty is crucial for attracting investment.
