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Britain’s quilter builds wealth but raises inflation concerns

British five pound banknotes can be seen in this illustration dated November 14, 2017. REUTERS / Benoit Tessier / Illustration // File Photo

  • Quilter’s assets under management grow by 8%
  • Reports major legal loss
  • Stocks fall down in early trading

Aug 11 (Reuters) – UK wealth manager Quilter (QLT.L) reported a surge in assets under management on Wednesday but cautioned caution amid inflation and volatility in financial markets amid US-China tensions.

Quilter made £ 56 million on an adjusted basis for the six months to June, 19% more than the first half of last year, and increased its half-year dividend from 1p to 1.7p per share.

However, legally, the company slumped to a loss of £ 21 million ($ 29.01 million) versus a profit of £ 13 million. It mentioned the impact of rising stock markets on policyholder tax accounting.

“We have seen spurts of volatility that reflect uncertainty about heightened US-China tensions coupled with concerns about the direction of inflation and interest rates,” Quilter said in a statement.

“This leaves us wary of expectations of further significant near-term market appreciation.”

Quilter stocks, which had lagged the broader midcap index so far this year, were down over 3% by 0755 GMT, trailing a flat market.

The company, a spin-off of Anglo-South African insurer Old Mutual, announced that assets under management and management were up 8% in late June 2021 to £ 104.8 billion compared to the end of 2020. Net inflow for the first half was £ 2 billion.

“After the wider challenges and market volatility of 2020, the first half of 2021 was a welcome return to more normal market conditions with improved inflows and rising equity markets,” Quilter CEO Paul Feeney said in a statement.

After completing an upgrade to its largest business, Quilter Investment Platform, the company began to point to signs of increased flows after fully migrating advisors and clients to the new platform.

($ 1 = 0.7239 pounds)

Additional reporting by Carolyn Cohn in London, edited by Barbara Lewis and Kirstin Ridley

Our Standards: The Thomson Reuters Trust Principles.

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