REG - Quilter PLC - Quilter plc - 2024 Q4 Trading Update

QuilterAnnouncement

22/01/2025 07:00

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RNS Number : 1930U  Quilter PLC  22 January 2025

22 January 2025

Fourth Quarter 2024 Trading Statement

Quilter reports record core net inflows of £5.2 billion in 2024. Fourth
quarter performance was the strongest of the year with core net inflows of
£2.0 billion, representing 7% of opening AuMA (annualised). Record quarterly
Platform net inflows of £1.9 billion, representing 9% of opening AuMA
(annualised).

Quilter plc highlights:

·      Group Assets under Management and Administration ("AuMA") of
£119.4 billion at the end of December 2024. The increase of 3% in the quarter
reflected net inflows coupled with broadly neutral markets and a positive
contribution from Sterling weakness.

·      Core fourth quarter net inflows of £1,960 million represented 7%
of opening AuMA on an annualised basis (Q4 2023: 1%). Fourth quarter net
inflows were 30% higher than the then record third quarter 2024 level and
significantly ahead of the first half 2024 quarterly run-rate.

o  In the High Net Worth segment, new business momentum remained strong.
Ahead of the UK Budget on 30 October, we experienced some asset repositioning
as clients accelerated asset disposals ahead of expected changes in capital
gains tax and made higher generational wealth transfers, as part of
inheritance tax planning:

§  Gross inflows of £767 million were broadly in line with the recent
quarterly run-rate.

§  Despite higher outflows in October ahead of the Budget, fourth quarter
net inflows of £208 million (Q4 2023: £76 million net outflow), represented
3% of opening AuMA (annualised).

o  The Affluent segment delivered another strong quarter, with:

§  Year-on-year increases in gross inflows of 58% to £3,915 million (Q4
2023: £2,471 million).

§  Lower year-on-year outflows contributed to fourth quarter net inflows of
£1,832 million (Q4 2023: £287 million), representing 9% (annualised) of
opening AuMA.

                The strength of our Platform proposition
continues to be demonstrated by significantly higher business volumes:

§  Fourth quarter Quilter channel gross and net inflows onto the Platform
increased by 22% and 32% respectively year-on-year.

§  IFA channel gross inflows onto the Platform increased by 91%
year-on-year. Net IFA inflows of £1,255 million were significantly higher
than the comparable period (Q4 2023: £6 million net inflow).

§  Record quarterly net inflows of £1,919 million during the fourth
quarter, represented 9% of opening AuMA (annualised).

·      Persistency levels in the quarter eased to 92% in the High Net
Worth segment and remained steady at 90% in the Affluent segment.

·      Productivity: Quilter channel annualised gross sales per Quilter
Adviser were £3.3 million in the fourth quarter, modestly higher than the
£3.2 million achieved in the first half.

 

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 provide a progress update on this work with our
preliminary results on 5 March 2025.

 Quilter plc: Three months ended 31 December 2024
 Quilter plc, unaudited                                               Q4 2024  Q4 2023
 AuMA: Reported (£bn)                                                 119.4    106.7
 Of which are administered on the UK Platform                         85.4     73.8
 Of which are administered on external platforms                      6.2      7.0
 Of which High Net Worth                                              29.5     27.0
 Gross inflow: Reported (£m)                                          4,589    2,979
 Net inflow: Core (£m)                                                1,960    175
 Net inflow: Reported (£m)                                            1,845    56
 Productivity: Quilter channel gross sales per Quilter Adviser (£m,   3.3      2.9
 annualised)

 Quilter plc: Year ended 31 December 2024
 Quilter plc, unaudited                                               2024     2023
 AuMA: Reported (£bn)                                                 119.4    106.7
 Gross inflow: Reported (£m)                                          16,044   11,174
 Net inflow: Core (£m)                                                5,200    832
 Net inflow: Reported (£m)                                            4,759    137
 Productivity: Quilter channel gross sales per Quilter Adviser (£m)   3.2      2.8

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

"Our business generated very strong inflows in 2024, as the strategic
initiatives we have put in place over the last few years have delivered
results. Most importantly, our performance accelerated over the course of the
year with each quarter incrementally stronger than the immediate prior
quarter. Notably, fourth quarter core net inflows of £2 billion were higher
than the aggregate of the first and second quarters, both of which benefitted
from tax year end related activity. This was achieved despite the budget
related turmoil and uncertainty. Fourth quarter core inflows represented 7% of
opening assets on an annualised basis.

"Our High Net Worth segment new business momentum remains strong. Despite
elevated outflows in October ahead of the UK Budget, net inflows of £208
million represented 3% of opening assets on an annualised basis.

"The Affluent segment continued to deliver an excellent performance with
further improvement in IFA flows and continued strong momentum from our own
Quilter Channel. Our Platform delivered record quarterly net inflows of nearly
£2 billion, representing 9% 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, with customers trusting us to manage
an additional £1.4 billion in new gross inflows during the fourth quarter
with a closing AUM of £18.4 billion.

"Our performance in 2024 demonstrates the strength of our two scale
distribution channels. We are the UK's largest discrete adviser Platform and,
we believe, the fastest growing amongst our larger company platform peers. Our
scale and distribution reach makes us uniquely positioned both to serve our
customers well and to benefit from the secular growth opportunity that the UK
Wealth market offers."

Enquiries

Investor Relations:

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

Maheet Harry                                        +44
(0) 7779 613 940

 

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 £119.4 billion in customer investments as at 31 December
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 31 December 2024 (£bn) -
unaudited

 2024 Q4 gross flows, net flows & AuMA (£bn), unaudited       AuMA           Gross      Net     AuMA         Of which managed by Quilter

inflows

                                                              as at
(£m)      flows   as at 31     AuM as at

30 September

 December
31 December

                         (£m)

                                                              2024                              2024         2024

 AFFLUENT SEGMENT
 Quilter channel(1)                                           18.5           1,057      641     19.1         15.2
 IFA channel on Quilter Investment Platform                   65.4           2,742      1,255   67.5         12.4
 Funds via third-party platform                               1.9            116        (64)    1.9          1.9
 Total Affluent segment core business                         85.8           3,915      1,832   88.5         29.5

 HIGH NET WORTH SEGMENT
 Quilter channel                                              3.4            182        149     3.6          3.6
 IFA channel incl. Direct                                     25.4           585        59      25.9         25.9
 Total High Net Worth segment                                 28.8           767        208     29.5         29.5

 Inter-Segment Dual Assets(2)                                 (1.6)          (105)      (80)    (1.7)        (0.5)

 Quilter plc core business                                    113.0          4,577      1,960   116.3        58.5

 Non-core                                                     3.2            12         (115)   3.1          1.9

 Quilter plc reported                                         116.2          4,589      1,845   119.4        60.4

 Affluent AuMA breakdown (incl. Non-core):
 Affluent administered only                                   58.3           2,535      1,289   60.2
 Affluent managed and administered                            24.3           1,164      630     25.2
 Quilter Platform Sub-Total(3)                                82.6           3,699      1,919   85.4
 Affluent external platform                                   6.4            228        (202)   6.2
 Affluent Total (Including Non-core)                          89.0           3,927      1,717   91.6
 (1)Quilter channel fourth quarter Platform discrete gross flows and net flows
 were £954m and £693m respectively, with closing AuMA of £16.7bn.

 (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 £3m of gross flows, £29m of net outflows
 and £1.2bn of closing AuMA related to non-core assets.

 

 

 

 

Quilter plc data tables for the full year ended 31 December 2024 (£bn) -
unaudited

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

inflows

                                                           as at
(£m)      flows    as at 31     AuM as at

31 December

 December
31 December

                        (£m)

                                                           2023                              2024         2024

 AFFLUENT SEGMENT
 Quilter channel(1)                                        17.2          4,105      2,293    19.1         15.2
 IFA channel on Quilter Investment Platform                58.7          8,801      3,040    67.5         12.4
 Funds via third-party platform                            1.6           401        (400)    1.9          1.9
 Total Affluent segment core business                      77.5          13,307     4,933    88.5         29.5

 HIGH NET WORTH SEGMENT
 Quilter channel                                           2.9           743        595      3.6          3.6
 IFA channel incl. Direct                                  24.1          2,373      4        25.9         25.9
 Total High Net Worth segment                              27.0          3,116      599      29.5         29.5

 Inter-Segment Dual Assets(2)                              (1.1)         (447)      (332)    (1.7)        (0.5)

 Quilter plc core business                                 103.4         15,976     5,200    116.3        58.5

 Non-core                                                  3.3           68         (441)    3.1          1.9

 Quilter plc reported                                      106.7         16,044     4,759    119.4        60.4

 Affluent AuMA breakdown (incl. Non-core):
 Affluent administered only                                53.2          7,974      3,272    60.2
 Affluent managed and administered                         20.6          4,454      2,314    25.2
 Quilter Platform Sub-Total(3)                             73.8          12,428     5,586    85.4
 Affluent external platform                                7.0           947        (1,094)  6.2
 Affluent Total (Including Non-core)                       80.8          13,375     4,492    91.6
 (1)Quilter channel full year Platform discrete gross flows and net flows were
 £3,615m and £2,662m respectively, with closing AuMA of £16.7bn.

 (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 £12m of gross flows, £116m of net outflows
 and £1.2bn of closing AuMA related to non-core assets.

 

 

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

 2023 Q4 gross flows, net flows & AuMA (£bn), unaudited       AuMA           Gross      Net     AuMA         Of which managed by Quilter

inflows

                                                              as at
(£m)      flows   as at 31     AuM as at

30 September

 December
31 December

                         (£m)

                                                              2023                              2023         2023

 AFFLUENT SEGMENT
 Quilter channel(1)                                           16.1           955        331     17.2         13.3
 IFA channel on Quilter Investment Platform                   55.6           1,436      6       58.7         10.6
 Funds via third-party platform                               1.6            80         (50)    1.6          1.6
 Total Affluent segment core business                         73.3           2,471      287     77.5         25.5

 HIGH NET WORTH SEGMENT
 Quilter channel                                              2.7            123        83      2.9          2.9
 IFA channel incl. Direct                                     23.0           434        (159)   24.1         24.1
 Total High Net Worth segment                                 25.7           557        (76)    27.0         27.0

 Inter-Segment Dual Assets(2)                                 (0.9)          (67)       (36)    (1.1)        (0.3)

 Quilter plc core business                                    98.1           2,961      175     103.4        52.2

 Non-core                                                     3.3            18         (119)   3.3          2.1

 Quilter plc reported                                         101.4          2,979      56      106.7        54.3

 Affluent AuMA breakdown (incl. Non-core):
 Affluent administered only                                   50.7           1,291      47      53.2
 Affluent managed and administered                            18.9           927        450     20.6
 Quilter Platform Sub-Total(3)                                69.6           2,218      497     73.8
 Affluent external platform                                   7.0            271        (329)   7.0
 Affluent Total (Including Non-core)                          76.6           2,489      168     80.8
 (1)Quilter channel fourth quarter Platform discrete gross flows and net flows
 were £781m and £526m respectively, with closing AuMA of £13.9bn.

 (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, £35m of net outflows
 and £1.2bn of closing AuMA related to non-core assets.

 

 

Quilter plc data tables for the full year ended 31 December 2023 (£bn) -
unaudited

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

inflows

                                                           as at
(£m)      flows    as at 31     AuM as at

31 December

 December
31 December

                        (£m)

                                                           2022                              2023         2023

 AFFLUENT SEGMENT
 Quilter channel(1)                                        15.4          3,608      1,608    17.2         13.3
 IFA channel on Quilter Investment Platform                54.1          5,251      (164)    58.7         10.6
 Funds via third-party platform                            2.0           301        (316)    1.6          1.6
 Total Affluent segment core business                      71.5          9,160      1,128    77.5         25.5

 HIGH NET WORTH SEGMENT
 Quilter channel                                           2.4           513        369      2.9          2.9
 IFA channel incl. Direct                                  23.1          1,681      (507)    24.1         24.1
 Total High Net Worth segment                              25.5          2,194      (138)    27.0         27.0

 Inter-Segment Dual Assets(2)                              (0.8)         (258)      (158)    (1.1)        (0.3)

 Quilter plc core business                                 96.2          11,096     832      103.4        52.2

 Non-core                                                  3.4           78         (695)    3.3          2.1

 Quilter plc reported                                      99.6          11,174     137      106.7        54.3

 Affluent AuMA breakdown (incl. Non-core):
 Affluent administered only                                50.0          4,823      270      53.2
 Affluent managed and administered                         17.0          3,369      1,520    20.6
 Quilter Platform Sub-Total(3)                             67.0          8,192      1,790    73.8
 Affluent external platform                                7.9           1,046      (1,357)  7.0
 Affluent Total (Including Non-core)                       74.9          9,238      433      80.8
 (1)Quilter channel full year Platform discrete gross flows and net flows were
 £2,934m and £2,074m respectively, with closing AuMA of £13.9bn.

 (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 £7m of gross flows, £120m of net outflows
 and £1.2bn of closing AuMA related to non-core assets.

 

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