The firm reported a 13.7% fall in assets under management and administration (AUMA) to 95.3 billion pounds at March 31 and said its average AUMA for the quarter came in at 105.2 billion pounds versus 105.7 billion pounds for 2019.

As a result of the lower AUMA, Quilter, which was spun out of Anglo-South African insurance company Old Mutual in 2018, said it no longer expected to achieve its 27% operating margin target in 2020.

It said it would look to cut costs by around 30 million pounds this year through lower variable compensation, reduced marketing spend and other short-term initiatives.

At end-March, the group held around 750 million pounds in cash across its holding companies and estimated its group Solvency II ratio - a key measure of financial strength - to be around 210%.

"After a good start to the quarter in terms of flows, revenues and profitability, the global health crisis caused by COVID-19 has significantly altered economic and market expectations for the foreseeable future," Chief Executive Paul Feeney said in a statement on Tuesday.

"The path and timing of the reversion to a more normal environment remain unclear and we expect this to be reflected in further market volatility."

Quilter said its advice-focussed business model has demonstrated its resilience, as the novel coronavirus pandemic continues to wreak havoc on global financial markets and spook many investors into exiting higher risk assets.

While it saw some de-risking late in the quarter through asset reallocation towards money market funds, Quilter said its strongest month of the quarter for net flows was in March.

Quilter said it expected a slower second quarter as the economic effects of the current situation become more widely felt.

($1 = 0.8061 pounds)

By Sinead Cruise