UK's Quilter expects modest second-half profit growth on investor caution; shares sink

Aug 6 (Reuters) - British money manager Quilter on Thursday forecast modest profit gains in the second half of the current fiscal year, as an uncertain macroeconomic environment could make investors more cautious.

The modest forecast may lead the company to miss its annual estimates, analysts say. 

Here are some details:

• Quilter expects second-half adjusted pre-tax profit to be around mid-single-digit percentage higher than the £112 million ($150.7 million) it reported for the first half.

• Projections from J.P. Morgan and RBC Capital Markets imply Quilter's annual profit may be roughly £230 million, below a company-compiled consensus of £236 million.

• UK wealth managers are navigating an uncertain economic backdrop and an ongoing debate over pension and savings policies, while balancing investment in growth against pressure on operating margins.

• A volatile market backdrop, worsened by the conflict in the Middle East and worries about the global economy, has also made investors cautious.

• The company reported record core net inflows of £6 billion for the first half, up 32% from a year earlier, and net management fee revenue increased 16% to £298 million.

• Shares of the company were trading down 4.4%, their biggest drop since February 11, at 193.7 pence around 0805 GMT.

• The wealth manager's business performance contrasted with its peers. Aberdeen reported net outflows, while St. James's Place posted lower first-half inflows.

• Separately, TP ICAP warned that the fallout from the Middle East conflict hit activity in some of its businesses and led to a sharp reduction in oil futures volumes traded during the second quarter.($1 = 0.7431 pounds)

(Reporting by Atharva Singh in Bengaluru; Editing by Harikrishnan Nair)