Despite the fall Quilter said the year was, “a pleasing outturn.”

The company said the AUMA fall was mainly due to adverse market movements of £14bn.

Quilter's investment platform posted net inflows of £2.2bn, down from £3.5bn in 2021. The figure represented 3% of opening AUMA, down from 5% in 2021.

It said the figures reflected an industry-wide slowdown in gross flows.

Adjusted profit before tax for 2022 was £134m, compared to £138m the year before.

Steven Levin, chief executive, said: “Delivering a broadly similar 2022 operating performance to 2021 was a pleasing outturn given more challenging market conditions during the year.”

Since being appointed as chief executive in November 2022, he has been focussing on what more the company needs to do to realise Quilter’s potential.

He said: ”While we are well positioned across the UK wealth industry, I believe we can go further to improve performance.

“My plan is to build on our existing distribution strengths, enhance our client propositions and drive greater efficiency across our business to ensure we deliver faster growth and higher profitability.”

He said current market conditions are very different from those the company had anticipated at its Capital Markets Day in late 2021, before the war in Ukraine.

As a result it has had to rebase some of the targets it set out then.

He said the firm’s high net worth segment - operating under the Quilter Cheviot and Quilter Private Client Advisers brands - continued to perform well in 2022.

However he said the company’s distribution channels - IFAs and its own Quilter Channel advisers – had been hit by the wave of consolidation and takeovers hitting the market.

He said: “The adviser market has been going through a period of structural change with an increasing amount of private equity capital looking to back advice consolidation vehicles.

“As a result, we have seen a number of smaller independent firms seeking to move their clients to these new businesses which impacted on flows in our UK Platform which administers funds on behalf of clients of these firms.”