Quilter PLC (LON:QLT), the UK wealth management business that was spun out of Old Mutual PLC earlier this year, said weaker investor sentiment led to a 42% decline in net retail flows for the third quarter.
The company generated net client cash flow, excluding the life assurance business, of £1.1bn in the three months to September 30, down from £1.9bn last year.
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"Over the last quarter more volatile investment markets and geopolitical uncertainty have contributed to weaker investor sentiment resulting in a market-wide reduction in net retail flows,” said chief executive Paul Feeney.
“Year to date flows across the market are down 55% on the comparable period according to the Investment Association.”
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Despite the mixed global market performance, assets under management and administration rose to £118.1bn at the end of September from £114.4bn at the end of December.
Net flows came to £2.7bn as gross inflows of £11.5bn offset gross outflows of £8.8bn.
“We remain confident in the long-term prospects for our business model. We look forward to reporting our full year results in March 2019,” said Feeney.
Shares dropped 1.04% to 113.8p in morning trading.
Quilter was formerly known as Old Mutual Wealth before it was separated from Old Mutual PLC as part of the break-up of the business.