REG - Quilter PLC - Quilter First Quarter 2024 Trading Statement

QuilterAnnouncement

24/04/2024 07:00

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RNS Number : 7667L  Quilter PLC  24 April 2024

24 April 2024

Quilter plc

First Quarter 2024 Trading Statement

Quilter first quarter flows demonstrate continued strong business momentum

Quilter plc highlights:

·      Group Assets under Management and Administration ("AuMA") of
£111.6 billion at the end of March 2024 increased by 5% on 31 December 2023
levels. This reflected improved net inflows and higher equity markets,
partially offset by rising bond yields in the quarter which reduced the market
value of bond portfolios.

o  Average AuMA for the first quarter of £108.3 billion was 6% ahead of the
2023 full year average of £102.1 billion.

·      Core net inflows of £810 million were approximately double the
prior year level (Q1 2023: £409 million) and represented 3% of opening AuMA
on an annualised basis (Q1 2023: 2%).

o  The Quilter channel delivered another strong quarter, with:

§  Q1 net inflows as an annualised percentage of opening AuMA of 20% in the
High Net Worth segment and 12% in the Affluent segment.

§  Year-on-year increases in gross inflows of 57% in the High Net Worth
segment and 16% in the Affluent segment.

o  The strength of our Platform proposition continues to be evidenced by
increased levels of new business:

§  Quilter channel gross and net flows onto the Platform increased by 25%
and 23% respectively year-on-year.

§  IFA channel gross inflows onto the Platform increased by 41% on the
comparable period, with net inflows increasing over 400% to £423 million (Q1
2023: £83 million).

§  Improved new business levels meant the Quilter Platform delivered net
inflows of over £1.0 billion during Q1, the highest level achieved since
early 2018, representing an annualised 6% of opening AuMA.

o  In High Net Worth, despite outflows remaining elevated, in line with
industry peers, the segment increased gross and net flows by 24% and 33%
respectively versus first quarter 2023.

·      First quarter non-core net outflows of £103 million were broadly
consistent with the comparative period (Q1 2023: £96 million). After non-core
net outflows, reported net inflows of £707 million represented 3%
(annualised) of opening AuMA (Q1 2023: £313 million or 1%).

·      Persistency levels in the quarter remained broadly stable at 90%
in the High Net Worth segment and 89% in the Affluent segment.

·      Productivity: Quilter channel annualised gross sales per Quilter
Adviser were £3.3 million in the first quarter, up 22% on the comparable
period.

Ongoing Adviser Charging: 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 Limited network of appointed
representative firms ("AR Firms"). The purpose of this review is to determine
if the AR Firms have met their ongoing servicing obligations to customers and,
if not, remediate customers to the extent appropriate. Following discussion
with the FCA, the review will be conducted by a skilled person. This is
expected to commence shortly, and we will update the market on the outcome of
the review in due course.

 Quilter plc: Three months ended 31 March 2024
 Quilter plc, unaudited                                               Q1 2024  Q1 2023
 AuMA: Reported (£bn)                                                 111.6    101.9
 Of which are administered on the UK Platform                         77.8     69.0
 Of which are administered on external platforms                      6.8      7.8
 Of which High Net Worth                                              28.1     25.9
 Gross flow: Reported (£m)                                            3,646    2,824
 Net flow: Core (£m)                                                  810      409
 Net flow: Reported (£m)                                              707      313
 Productivity: Quilter channel gross sales per Quilter Adviser (£m,   3.3      2.7
 annualised)

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

"We are pleased to report that our first quarter net flows are running at
double the level experienced last year, reflecting the momentum in our
business, actions we have taken and tentative signs of improving market
sentiment.

"The Quilter channel continues to drive strong flows in both our High Net
Worth and Affluent segments. Our focus on broadening and deepening our
business relationships is demonstrating clear results, with IFA and Quilter
channel gross new business increasing by 34% and 21% respectively on the prior
year.

"We are particularly pleased that our Platform achieved net flows of over £1
billion during the quarter, representing the strongest quarter for Platform
net inflows during our time as a listed company. Moreover, a 41% year-on-year
growth in first quarter gross new business from IFAs in the Affluent segment
led to an over 400% increase in net inflows from IFAs onto the Quilter
Platform in the quarter."

Enquiries

Investor Relations:

John-Paul Crutchley
+44 (0) 7741 385 251

Keilah
Codd
+44 (0) 7776 649 681

 

 

Media:

 

Tim
Skelton-Smith
+44 (0) 7824 145 076

 

Camarco:

 

Geoffrey Pelham-Lane                          +44 (0)
7733 124 226

Ben
Woodford
+44 (0) 7990 653 341

 

Company Secretary:

 

Clare
Barrett
+44 (0) 7741 384 512

 

 

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 £111.6 billion in customer investments as at 31 March 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 conflict in Ukraine
and the Middle-East, 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 31 March 2024 (£bn) -
unaudited

 2024 Q1 gross flows, net flows & AuMA (£bn), unaudited       AuMA          Gross      Net     AuMA         Of which managed by Quilter

flows

                                                              as at
(£m)      flows   as at        AuM as at

 31 March

                                                              31 December              (£m)
            31 March

                                2024

                                                              2023                                          2024

 AFFLUENT SEGMENT
 Quilter channel(1)                                           17.2          1,033      506     17.3         13.6
 IFA channel on Quilter Investment Platform                   58.7          1,833      423     62.0         11.6
 Funds via third-party platform                               1.6           90         (141)   1.9          1.9
 Total Affluent segment core business                         77.5          2,956      788     81.2         27.1

 HIGH NET WORTH SEGMENT
 Quilter channel                                              2.9           184        142     3.1          3.1
 IFA channel incl. Direct                                     24.1          591        (49)    25.0         25.0
 Total High Net Worth segment                                 27.0          775        93      28.1         28.1
 Inter-Segment Dual Assets(2)                                 (1.1)         (109)      (71)    (1.1)        (0.3)
 Quilter plc core business                                    103.4         3,622      810     108.2        54.9

 Non-core                                                     3.3           24         (103)   3.4          2.1

 Quilter plc reported                                         106.7         3,646      707     111.6        57.0

 Affluent AuMA breakdown (incl. Non-core):
 Affluent administered only                                   53.2          1,675      512     55.4
 Affluent managed and administered                            20.6          1,056      536     22.4
 Quilter Platform Sub-Total(3)                                73.8          2,731      1,048   77.8
 Affluent external platform                                   7.0           249        (363)   6.8
 Affluent Total (Including Non-core)                          80.8          2,980      685     84.6
 (1) Quilter channel first quarter Platform discrete gross flows and net flows
 were £893m and £652m respectively, with closing AuMA of £14.5bn.

 (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.

 (3)The Quilter Platform includes £5m of gross flows, £27m of net outflows
 and £1.3bn of closing AuA related to non-core assets.

 

 

 

 

Quilter plc data tables for the three months ended 31 March 2023 (£bn) -
unaudited

 2023 Q1 gross flows, net flows & AuMA (£bn), unaudited       AuMA          Gross      Net       AuMA       Of which managed by Quilter

flows

                                                              as at
 (£m)     flows     as at      AuM as at

31 December
 (£m)

31 March

                                  31 March

                                                              2022
          2023
                                                                                                 2023

 AFFLUENT SEGMENT
 Quilter channel(1)                                           15.4          887        437       15.7       12.0
 IFA channel on Quilter Investment Platform                   54.1          1,301      83        55.8       9.6
 Funds via third-party platform                               2.0           56         (132)     2.0        2.0
 Total Affluent segment core business                         71.5          2,244      388       73.5       23.6

 HIGH NET WORTH SEGMENT
 Quilter channel                                              2.4           117        84        2.5        2.5
 IFA channel incl. Direct                                     23.1          510        (14)      23.4       23.4
 Total High Net Worth segment                                 25.5          627        70        25.9       25.9
 Inter-Segment Dual Assets(2)                                 (0.8)         (66)       (49)      (0.8)      (0.3)
 Quilter plc core business                                    96.2          2,805      409       98.6       49.2

 Non-core                                                     3.4           19         (96)      3.3        2.1

 Quilter plc reported                                         99.6          2,824      313       101.9      51.3

 Affluent AuMA breakdown (incl. Non-core):
 Affluent administered only                                   50.0          1,225      251       51.1
 Affluent managed and administered                            17.0          792        340       17.9
 Quilter Platform Sub-Total(3)                                67.0          2,017      591       69.0
 Affluent external platform                                   7.9           246        (299)     7.8
 Affluent Total (Including Non-core)                          74.9          2,263      292       76.8
 (1) Quilter channel first quarter Platform discrete gross flows and net flows
 were £715m and £529m respectively, with closing AuMA of £12.0bn.

 (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.

 (3)The Quilter Platform includes £1m of gross flows, £21m of net outflows
 and £1.2bn of closing AuA related to non-core assets.

 

 

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