UK's Aberdeen Posts Nearly $4 Billion of Outflows for First Quarter

UK wealth manager Quilter bucks trend as Aberdeen and Liontrust hit by outflows

Quilter Reports Record Inflows Amid Market Volatility

Quilter's Performance in the First Quarter

April 22 (Reuters) - British money manager Quilter posted record net inflows of 3.1 billion pounds ($4.2 billion) in the first quarter, while rivals Aberdeen and Liontrust reported net outflows due to market volatility sparked by the Iran war.

Share Price Movements

Quilter shares were up 5.2% in early trade on Wednesday, while Liontrust was up 2% after it said managed assets as at April 20 rose from end of March levels. Aberdeen shares were marginally higher.

Impact of Iran Conflict on Global Markets

Global markets have whipsawed since the Iran conflict began on February 28, with investor sentiment influenced by developments in the war. Money managers such as Schroders and Ashmore last week reported heavy client withdrawals in March.

Asset Growth and Management Updates

Quilter's Asset Growth

However, Quilter said a recent market recovery lifted its managed assets from the end of March levels, reporting 141.9 billion pounds in assets under management and administration as of March 31, slightly up on the prior quarter, but gave no April update.

Liontrust's Asset Performance

Liontrust echoed the sentiment as it said its managed assets as at April 20 rose a little over 6% from their March-end levels of 19.6 billion pounds. 

Industry Trends and Competitive Landscape

Changing Wealth Management Models

The contrasting results highlight how changing distribution and investment models are reshaping UK wealth management, with platform-based and advice-led firms drawing inflows while traditional active managers face pressure from low-margin equity outflows and cheaper index funds.

Aberdeen's Outflows and Asset Decline

First Quarter Outflows

London-based Aberdeen posted net outflows of 2.9 billion pounds for the first quarter, hit by anticipated lower-margin equities withdrawals of around 4 billion pounds.

Managed Assets at Aberdeen

Its managed assets fell to 547.7 billion pounds at the end of March, from the 556 billion pounds reported at the end of December, as weak markets in March weighed on assets despite record growth at its interactive investor platform.

($1 = 0.7394 pounds)

(Reporting by Yamini Kalia in Bengaluru; Editing by Harikrishnan Nair and Emelia Sithole-Matarise)