Quilter has seen 12 investment managers resign since listing on the London Stock Exchange in June, which could lead to "higher than trend" outflows in 12 to 18 months' time, chief executive Paul Feeney has warned.
In Quilter's first results since separating from parent company Old Mutual, the firm saw its overall assets under management/administration (AUMA) increase 2% to £116.5bn between 31 December 2017 and the end of June.
This included positive net inflows of £2.2bn, offset by weaker overall performance of £100m.
Total revenue rose 11% from £346m in H1 last year to £385m in H1 2018 while adjusted profit before tax was up 16% to £110m over the same period.
In total, net client cash flow (NCCF), excluding Quilter Life Assurance, fell 12% over the same period as stronger inflows for Quilter Investors was "more than" offset by weaker flows for Quilter International and Quilter Cheviot, which were down 75% and 17% respectively.
NCCF for the advice and wealth management segment rose 10% from H1 2017 to £2.3bn, with Quilter Investors' Cirilium fund range representing 57% of the segment's net flows.
Quilter announced a special interim dividend of 12 pence per share, returning £221m surplus proceeds from the sale of the single strategy business to shareholder.
Despite investing in the investment management team at Quilter Cheviot, with nine hires since June 2017, the firm noted 12 resignations since the listing.
"This may lead to higher than trend outflows in 12 to 18 months' time," Feeney added. "We have just listed so we are realistic there could be attrition because when investment managers leave there are contracts and lock-in clauses to deal with."
Feeney said there were three "key priorities" in the near-term the firm would be focusing on, including the implementation of the new platform, continued investment into the adviser and investment manager base and the optimisation of the business in order to deliver "increased operating leverage."
The CEO commented: "These are all on track and we remain confident in our strategic path and the growth prospects that we set out in our prospectus ahead of listing. We are very much where we expected to be at this stage on the Quilter journey.
"While short-term market fluctuations and Brexit-induced uncertainty may exacerbate market volatility or temper momentum in near-term flows, we operate in a large and fragmented market that has plenty of growth potential."
Its £17bn multi-asset business, formerly part of Old Mutual Global Investors (OMGI), rebranded as Quilter Investors in July following the completion of the sale of Richard Buxton's single-strategy business to TA Associates and senior management for £600m in June.
The Advice and Wealth Management segment will include: Intrinsic, which intends to rebrand to Quilter Financial Planning; Private Client Advisers, which will become Quilter Private Client Advisers; Quilter Investors and Quilter Cheviot.
The wealth platforms segment will include the UK platform, which will become Quilter Wealth Solutions and the international business, which is to become Quilter International. Its Heritage life assurance business will become Quilter Life Assurance.
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