UK Asset Gatherers: H126 Preview: Quilter leads on flows, STJ remains defensive

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UK Asset Gatherers: H126 Preview: Quilter leads on flows, STJ remains defensive

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UK Asset Gatherers

H126 Preview: Quilter leads on flows, STJ

remains defensive

Price Objective Change

Favourable structural backdrop remains intact 14 July 2026

We remain positive on the UK Wealth Managers, benefitting from structural tailwinds Equity

and benefits of scale. We see EPS upgrades across each manager, largely driven by Europe

strong market performance. QLT remains the leader in net flows, with its superior Other Financials

Platform and diversified operating model providing some defence amidst a challenging Christiane Holstein >>

macro environment. We see STJ as having greatest rerating potential towards YE26, and Research Analyst

expect RAT’s recovery to be delayed given the ongoing regulatory review (read here). MLI+44 (UK)20 7996 1011

christiane.holstein@bofa.com

STJ: Momentum building with rerating towards YE26 Hubert Lam >>

We reiterate our Buy rating and albeit lower our PO to 1650p (-7% from 1770p) into ResearchMLI (UK) Analyst

their H126 results on 29th July. Our PO lowers as we apply a 10% discount to our 18x PE +44 20 7996 7112

hubert.lam@bofa.com

fair value, driven by near term headwinds following media headlines that partner firm

Sovereign Wealth may be exiting. We gain comfort that 1) a potential departure would

not necessarily mean loss of all FUM nor advisers, and 2) STJ’s strong adviser Exhibit 1: Rating and PO changes

proposition, platform capabilities and high adviser retention should prevent increased We have Buys on STJ and QLT

exits. We estimate £229bn AUMA (+5% QoQ), with net inflows of £2.6bn in H126 (1% of

Rating New PO Old POopening FUM) and positive market performance. While we have slightly reduced net flow