Quilter plc - Third Quarter 2024 Trading Statement

Quilter PLC

16 October 2024

 

16 October 2024

Third Quarter 2024 Trading Statement

Quilter reports third quarter net inflows of £1.4 billion, materially higher than strong first and second quarter levels, and record quarterly Platform net inflows of £1.5 billion

Quilter plc highlights:

·      Group Assets under Management and Administration ("AuMA") of £116.2 billion at the end of September 2024. The increase of 2% in the quarter reflected net inflows, and higher market levels with this partially offset by Sterling appreciation.

·      Core third quarter net inflows of £1,507 million represented 5% of opening AuMA on an annualised basis (Q3 2023: 0%). The third quarter net inflows were significantly higher than the strong first and second quarter levels of £810 million and £923 million respectively.

o  In the High Net Worth segment, recent improvement in new business momentum was sustained and outflows eased from recent elevated levels:

§ Gross flows increased to £817 million versus £775 million and £757 million in Q1 and Q2 respectively.

§ Lower outflows led to third quarter net inflows of £284 million (Q3 2023: £116 million net outflow), representing 4% (annualised) of opening AuMA.

o  Our Affluent segment delivered another strong quarter, with:

§ Year-on-year increases in gross inflows of 50% to £3.3 billion (Q3 2023: £2.2 billion), and

§ Lower outflows led to third quarter net inflows of £1,322 million (Q3 2023: £151 million), representing 6% (annualised) of opening AuMA.

                The strength of our Platform proposition continues to be evidenced by significantly increased business volumes during the quarter:

§ Quilter channel gross inflows and net inflows onto the Platform increased by 22% and 31% respectively year-on-year.

§ IFA channel gross inflows onto the Platform increased by 76% year-on-year. Net inflows increased by c.£1 billion on the comparable period to £821 million (Q3 2023: £187 million net outflow).

§ Record quarterly net inflows of almost £1.5 billion during the third quarter, representing 7% of opening AuMA (annualised).

·      Persistency levels in the quarter improved to 93% in the High Net Worth segment and 91% in the Affluent segment.

·      Productivity: Quilter channel annualised gross sales per Quilter Adviser were £3.1 million in the third quarter, broadly stable on first half levels.

Ongoing Adviser Evidence Review: In our preliminary results announcement on 6 March 2024, we committed to undertake a review of historical data and practices across the Quilter Financial Planning network of Appointed Representative firms. A Skilled Person was appointed to undertake this work in June 2024, and we expect to be able to update on the outcomes of this work in early 2025.

Quilter plc: Three months ended 30 September 2024
Quilter plc, unaudited	Q3 2024	Q3 2023
AuMA: Reported (£bn)	116.2	101.4
Of which are administered on the UK Platform	82.6	69.6
Of which are administered on external platforms	6.4	7.0
Of which High Net Worth	28.8	25.7
Gross flow: Reported (£m)	4,003	2,650
Net flow: Core (£m)	1,507	1
Net flow: Reported (£m)	1,383	(118)
Productivity: Quilter channel gross sales per Quilter Adviser (£m, annualised)	3.1	2.7
Quilter plc: Nine months ended 30 September 2024
Quilter plc, unaudited	Q3 2024	Q3 2023
AuMA: Reported (£bn)	116.2	101.4
Gross flow: Reported (£m)	11,455	8,195
Net flow: Core (£m)	3,240	657
Net flow: Reported (£m)	2,914	81
Productivity: Quilter channel gross sales per Quilter Adviser (£m, annualised)	3.2	2.7

Steven Levin, Chief Executive Officer of Quilter plc, commented:

"In what is traditionally the slower summer quarter, we have delivered an excellent performance. Both of our segments contributed to a significantly improved outcome from an already strong first half base. Third quarter core net inflows of £1.5 billion and reported net inflows of £1.4 billion represented 5% of opening assets on an annualised basis at both a core and reported level.

"Our High Net Worth segment has continued to drive new business momentum which, when coupled with an easing in client withdrawals, led to significantly improved quarterly net inflows of £284 million, the highest level since the third quarter of 2021. This represented 4% of opening assets on an annualised basis.

"The Affluent segment also delivered an excellent result. After a very strong first half performance from our Platform, we delivered an acceleration in momentum in the third quarter which led to record quarterly net inflows of nearly £1.5 billion. This represented 7% of opening assets on an annualised basis. In addition, WealthSelect, our market leading MPS continues to build on its 10-year track record of outperformance, which has seen customers trust us to manage an additional £1.4 billion in new gross flows during the third quarter with a closing AUM of £17.4 billion.

"While we look to the future with confidence, the upcoming UK Budget has introduced an unwelcome degree of uncertainty to the market. Given the importance of a stable tax and regulatory framework for individuals to plan their financial future with confidence, we believe that any meaningful changes proposed to the structure of UK pensions and savings should only be implemented after an appropriate period of industry-wide consultation. Additionally, any changes should incorporate transitional arrangements, as has been the general practice to date. We look forward to continued engagement with the UK Government in this regard."

Enquiries

Investor Relations:

John-Paul Crutchley                             [phone]

Maheet Harry                                         [phone]

Media:

Tim Skelton-Smith                                 [phone]

Camarco: 

Geoffrey Pelham-Lane                          [phone]

Ben Woodford                                          [phone]

Company Secretary:

Clare Barrett                                           [phone]            

About Quilter plc

Quilter plc is a leading provider of financial advice, investments and wealth management, committed to being the UK's best wealth manager for clients and their advisers.

Quilter oversees £116.2 billion in customer investments as at 30 September 2024.

It has an adviser and customer offering spanning: financial advice, investment platforms, multi-asset investment solutions, and discretionary fund management. The business is comprised of two segments: Affluent and High Net Worth.

Affluent encompasses the financial planning businesses, Quilter Financial Planning, the Quilter Investment Platform and Quilter Investors, the Multi-asset investment solutions business.

High Net Worth includes the discretionary fund management business, Quilter Cheviot, together with Quilter Cheviot Financial Planning.

Disclaimer

This announcement may contain forward-looking statements with respect to certain Quilter plc's plans and its current goals and expectations relating to its future financial condition, performance and results. By their nature, all forward-looking statements involve risk and uncertainty because they relate to future events and circumstances which are beyond Quilter plc's control including amongst other things, international and global economic and business conditions, the implications and economic impact of the conflicts in the Ukraine and the Middle East, economic political uncertainty, market related risks such as fluctuations in interest rates and exchange rates, the policies and actions of regulatory authorities, the impact of competition, inflation, deflation, the timing and impact of other uncertainties of future acquisitions or combinations within relevant industries, as well as the impact of tax and other legislation and other regulations in the jurisdictions in which Quilter plc and its affiliates operate. As a result, Quilter plc's actual future financial condition, performance and results may differ materially from the plans, goals and expectations set forth in Quilter plc's forward-looking statements. Quilter plc undertakes no obligation to update the forward-looking statements contained in this announcement or any other forward-looking statements it may make.

Quilter plc data tables for the three months ended 30 September 2024 (£bn) - unaudited

2024 Q3 gross flows, net flows & AuMA (£bn), unaudited	AuMA as at 30 June 2024	Gross   flows (£m)	Net flows (£m)	AuMA as at    30 September 2024	Of which managed by Quilter AuM as at 30 September 2024
AFFLUENT SEGMENT
Quilter channel1	17.9	995	596	18.5	14.7
IFA channel on Quilter Investment Platform	63.6	2,213	821	65.4	12.1
Funds via third-party platform	1.9	81	(95)	1.9	1.9
Total Affluent segment core business	83.4	3,289	1,322	85.8	28.7
HIGH NET WORTH SEGMENT
Quilter channel	3.3	175	139	3.4	3.4
IFA channel incl. Direct	25.4	642	145	25.4	25.4
Total High Net Worth segment	28.7	817	284	28.8	28.8
Inter-Segment Dual Assets2	(1.5)	(121)	(99)	(1.6)	(0.5)
Quilter plc core business	110.6	3,985	1,507	113.0	57.0
Non-core	3.2	18	(124)	3.2	2.0
Quilter plc reported	113.8	4,003	1,383	116.2	59.0
Affluent AuMA breakdown (incl. Non-core):
Affluent administered only	56.9	1,998	868	58.3
Affluent managed and administered	23.1	1,100	587	24.3
Quilter Platform Sub-Total3	80.0	3,098	1,455	82.6
Affluent external platform	6.6	209	(257)	6.4
Affluent Total (Including Non-core)	86.6	3,307	1,198	89.0
1 Quilter channel third quarter Platform discrete gross flows and net flows were £884m and £665m respectively, with closing AuMA of £16.0bn. 2 Inter-segment dual assets reflect funds managed by Quilter Cheviot and administered by Quilter Investors and the Quilter Cheviot managed portfolio service solutions available to advisers on the Quilter Investment Platform. This is excluded from total AuMA to ensure no double count takes place. 3The Quilter Platform includes £1m of gross flows, £31m of net outflows and £1.2bn of closing AuMA related to non-core assets.

Quilter plc data tables for the nine months ended 30 September 2024 (£bn) - unaudited

2024 YTD gross flows, net flows & AuMA (£bn), unaudited	AuMA as at 31 December 2023	Gross   flows  (£m)	Net flows  (£m)	AuMA as at 30 September 2024	Of which managed by Quilter AuM as at 30 September 2024
AFFLUENT SEGMENT
Quilter channel1	17.2	3,048	1,652	18.5	14.7
IFA channel on Quilter Investment Platform	58.7	6,059	1,785	65.4	12.1
Funds via third-party platform	1.6	285	(336)	1.9	1.9
Total Affluent segment core business	77.5	9,392	3,101	85.8	28.7
HIGH NET WORTH SEGMENT
Quilter channel	2.9	561	446	3.4	3.4
IFA channel incl. Direct	24.1	1,788	(55)	25.4	25.4
Total High Net Worth segment	27.0	2,349	391	28.8	28.8
Inter-Segment Dual Assets2	(1.1)	(342)	(252)	(1.6)	(0.5)
Quilter plc core business	103.4	11,399	3,240	113.0	57.0
Non-core	3.3	56	(326)	3.2	2.0
Quilter plc reported	106.7	11,455	2,914	116.2	59.0
Affluent AuMA breakdown (incl. Non-core):
Affluent administered only	53.2	5,439	1,983	58.3
Affluent managed and administered	20.6	3,290	1,684	24.3
Quilter Platform Sub-Total3	73.8	8,729	3,667	82.6
Affluent external platform	7.0	719	(892)	6.4
Affluent Total (Including Non-core)	80.8	9,448	2,775	89.0
1 Quilter channel year to date Platform discrete gross flows and net flows were £2,661m and £1,969m respectively, with closing AuMA of £16.0bn. 2 Inter-segment dual assets reflect funds managed by Quilter Cheviot and administered by Quilter Investors and the Quilter Cheviot managed portfolio service solutions available to advisers on the Quilter Investment Platform. This is excluded from total AuMA to ensure no double count takes place. 3The Quilter Platform includes £9m of gross flows, £87m of net outflows and £1.2bn of closing AuMA related to non-core assets.

Quilter plc data tables for the three months ended 30 September 2023 (£bn) - unaudited

2023 Q3 gross flows, net flows & AuMA (£bn), unaudited	AuMA as at 30 June 2023	Gross   flows (£m)	Net flows (£m)	AuMA as at   30 September 2023	Of which managed by Quilter AuM as at 30 September 2023
AFFLUENT SEGMENT
Quilter channel1	15.9	878	414	16.1	12.4
IFA channel on Quilter Investment Platform	55.8	1,258	(187)	55.6	9.8
Funds via third-party platform	1.6	77	(76)	1.6	1.6
Total Affluent segment core business	73.3	2,213	151	73.3	23.8
HIGH NET WORTH SEGMENT
Quilter channel	2.6	124	91	2.7	2.7
IFA channel incl. Direct	23.3	363	(207)	23.0	23.0
Total High Net Worth segment	25.9	487	(116)	25.7	25.7
Inter-Segment Dual Assets2	(0.9)	(69)	(34)	(0.9)	(0.3)
Quilter plc core business	98.3	2,631	1	98.1	49.2
Non-core	3.4	19	(119)	3.3	2.1
Quilter plc reported	101.7	2,650	(118)	101.4	51.3
Affluent AuMA breakdown (incl. Non-core):
Affluent administered only	51.1	1,161	(79)	50.7
Affluent managed and administered	18.3	822	369	18.9
Quilter Platform Sub-Total3	69.4	1,983	290	69.6
Affluent external platform	7.3	249	(258)	7.0
Affluent Total (Including Non-core)	76.7	2,232	32	76.6
1 Quilter channel third quarter Platform discrete gross flows and net flows were £723m and £506m respectively, with closing AuMA of £12.8bn. 2 Inter-segment dual assets reflect funds managed by Quilter Cheviot and administered by Quilter Investors and the Quilter Cheviot managed portfolio service solutions available to advisers on the Quilter Investment Platform. This is excluded from total AuMA to ensure no double count takes place. 3The Quilter Platform includes £2m of gross flows, £29m of net outflows and £1.2bn of closing AuMA related to non-core assets.

Quilter plc data tables for the nine months ended 30 September 2023 (£bn) - unaudited

2023 YTD gross flows, net flows & AuMA (£bn), unaudited	AuMA as at 31 December 2022	Gross   flows  (£m)	Net flows  (£m)	AuMA as at 30 September 2023	Of which managed by Quilter AuM as at 30 September 2023
AFFLUENT SEGMENT
Quilter channel1	15.4	2,653	1,277	16.1	12.4
IFA channel on Quilter Investment Platform	54.1	3,815	(170)	55.6	9.8
Funds via third-party platform	2.0	221	(266)	1.6	1.6
Total Affluent segment core business	71.5	6,689	841	73.3	23.8
HIGH NET WORTH SEGMENT
Quilter channel	2.4	390	286	2.7	2.7
IFA channel incl. Direct	23.1	1,247	(348)	23.0	23.0
Total High Net Worth segment	25.5	1,637	(62)	25.7	25.7
Inter-Segment Dual Assets2	(0.8)	(191)	(122)	(0.9)	(0.3)
Quilter plc core business	96.2	8,135	657	98.1	49.2
Non-core	3.4	60	(576)	3.3	2.1
Quilter plc reported	99.6	8,195	81	101.4	51.3
Affluent AuMA breakdown (incl. Non-core):
Affluent administered only	50.0	3,532	223	50.7
Affluent managed and administered	17.0	2,442	1,070	18.9
Quilter Platform Sub-Total3	67.0	5,974	1,293	69.6
Affluent external platform	7.9	775	(1,028)	7.0
Affluent Total (Including Non-core)	74.9	6,749	265	76.6
1 Quilter channel year to date Platform discrete gross flows and net flows were £2,153m and £1,548m respectively, with closing AuMA of £12.8bn. 2 Inter-segment dual assets reflect funds managed by Quilter Cheviot and administered by Quilter Investors and the Quilter Cheviot managed portfolio service solutions available to advisers on the Quilter Investment Platform. This is excluded from total AuMA to ensure no double count takes place. 3The Quilter Platform includes £6m of gross flows, £85m of net outflows and £1.2bn of closing AuMA related to non-core assets.

 

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