By Muvija M
- British wealth manager Quilter reported a jump in assets and inflows on Wednesday but sounded a note of caution over volatility in financial markets, sending its shares sharply lower.
Half year adjusted profit from continuing operations jumped 19% to 56 million pounds ($77.40 million) and the company hiked half year dividends to 1.7 pence per share from 1 pence.
"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," the company said in a statement.
"This leaves us cautious on expectations of further substantial near-term market appreciation."
The company's shares, which gained over 15% over the last four weeks, slid nearly 6% by 1100 GMT, heading for their worst one-day performance since April last year.
CMC analyst Michael Hewson put the drop down to the cautious outlook.
CEO Paul Feeney said half year net inflows of 2 billion pounds were driven by an overhaul of operations this year and an upgrade to its investment platform.
"With rates where they are, which is virtually nothing, we are seeing the amount of savings that people have accumulated now being put to work in the market. (The) majority of those savings are coming via advice channels," Feeney told Reuters.
The company, which was spun-off from Anglo-South African insurer Old Mutual, said assets under management and administration grew by 8% to 104.8 billion pounds at end-June compared to the end of 2020.
(Graphic: Quilter vs FTSE 250, https://fingfx.thomsonreuters.com/gfx/buzz/zjpqkqrwapx/Pasted%20image%201628682601058.png)
($1 = 0.7239 pounds)
