REG - Quilter PLC - Quilter plc Fourth Quarter 2023 Trading Statement

QuilterAnnouncement

24/01/2024 07:00

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RNS Number : 6687A  Quilter PLC  24 January 2024

 

24 January 2024

Quilter plc

Fourth Quarter 2023 Trading Statement

Q4 Reported and core net flows rebound to deliver net positive inflow; fourth
quarter IFA Platform gross flows up 44% year-on-year

Quilter plc highlights:

·     Assets under Management and Administration ("AuMA") of £106.7
billion at 31 December 2023 increased by 5% on the end-September position
(£101.4 billion). This reflects supportive markets into year-end combined
with a contribution from net flows during the quarter.

·      Fourth quarter core business net inflows of £175 million
contrasted with net inflows of £242 million in the corresponding period of
2022 and were a significant improvement on the £1 million achieved in the
third quarter of 2023.

o  The Quilter channel delivered another strong quarter, resulting in:

§ Full year 2023 net inflows as a percentage of opening AuMA were 15% in the
High Net Worth segment and 10% in the Affluent segment.

§ Full year 2023 gross inflows increased by 16% year-on-year in the High Net
Worth segment and 12% in the Affluent segment.

§ Fourth quarter gross inflows in the Affluent segment were 8% ahead of the
average level in the first three quarters of 2023.

§ Fourth quarter gross inflows in the High Net Worth segment were consistent
with the prior quarter levels.

o  The strength of our Platform proposition, enhanced by strategic actions
taken, continues to be demonstrated by increased levels of new business
despite challenging market conditions:

§ Full year 2023 Quilter channel gross and net flows onto the Platform
increased by 15% and 14%, respectively.

§ IFA channel gross inflows onto the Platform in the fourth quarter increased
by 44% on the comparable period to £1.4 billion (Q4 2022: £1.0 billion) and
by 7% on a full year basis. This improved level of new business flow meant the
IFA channel returned to net inflow during the quarter, despite headwinds from
the impact of industry consolidation.

o  High Net Worth clients' continued portfolio repositioning given the
current macro environment led to an outflow in the IFA/directly sourced
channel, with this partially offset by net inflows in the Quilter channel.

·      Fourth quarter non-core net outflows of £119 million were
consistent with third quarter levels.

·      Persistency levels in the quarter remained broadly stable at 90%
in the High Net Worth segment and 88% in the Affluent segment.

·      Productivity: Quilter channel annualised gross sales per Quilter
Adviser were £2.9 million in the fourth quarter, up 21% on prior year period.

 Quilter plc: Three months ended 31 December 2023
 Quilter plc, unaudited                                               Q4 2023  Q4 2022
 AuMA: Reported (£bn)                                                 106.7    99.6
 Of which are administered on the UK Platform                         73.8     67.0
 Of which are administered on external platforms                      7.0      7.9
 Of which High Net Worth                                              27.0     25.5
 Gross flow: Reported (£m)                                            2,979    2,236
 Net flow: Core (£m)                                                  175      242
 Net flow: Reported (including non-core) (£m)                         56       159
 Productivity: Quilter channel gross sales per Quilter Adviser (£m,   2.9      2.4
 annualised)

 Quilter plc: Twelve months ended 31 December 2023
 Quilter plc, unaudited                                               2023     2022
 AuMA: Reported (£bn)                                                 106.7    99.6
 Gross flow: Reported (£m)                                            11,174   10,529
 Net flow: Core (£m)                                                  832      2,122
 Net flow: Reported (including non-core) (£m)                         137      1,787
 Productivity: Quilter channel gross sales per Quilter Adviser (£m)   2.8      2.3

 

 

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

"In what has been a tough year across the industry, we finished 2023 on a
positive note with improved fourth quarter performance relative to the third.
The Quilter channel continues to drive strong net flows in both our Affluent
and High Net Worth segments. Our focus on reshaping our Advice business is
demonstrating clear results, with Quilter channel gross sales per Quilter
Adviser increasing 21% on the prior year comparative period.

"Our actions to enhance the proposition of our Platform continue to bear
fruit. We saw 44% year-on-year growth in fourth quarter gross new business
from IFAs onto our Platform in our Affluent segment, resulting in us moving
back into a position of net inflows in this channel during the final quarter.

"Across the industry, 2023 saw a lot of focus on strategic positioning of
businesses within a consumer duty context; we remain confident that our open
and unbundled business model leaves us well positioned for the current
environment. We look forward to updating the market on the progress we are
making on our strategic goals of building distribution, enhancing
propositions, and improving efficiency at our Full Year Results on 6 March
2024."

 

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 UK-centric wealth management business, helping to
create prosperity for the generations of today and tomorrow.

 

Quilter oversees £106.7 billion in customer investments as at 31 December
2023.

 

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, 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 2023 (£bn) -
unaudited

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

flows

                                                              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
 Affluent external platform                                   7.0            271        (329)   7.0
 (1) For modeling purposes: Quilter channel fourth quarter Platform discrete
 gross flows and net flows were £781 million and £526 million, respectively,
 with closing AuMA of £13.9 billion.

 (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.

 

 

 

 

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

flows

                                                           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
 Affluent external platform                                7.9           1,046      (1,357)  7.0
 (1) For modeling purposes: Quilter channel 2023 Platform discrete gross flows
 and net flows were £2,934 million and £2,074 million, respectively, with
 closing AuMA of £13.9 billion.

 (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.

 

 

Quilter plc data tables for the three months ended 31 December 2022 (£bn) -
unaudited

 2022 Q4 gross flows, net flows & AuMA (£bn), unaudited       AuMA           Gross      Net       AuMA                Of which managed by Quilter

flows

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

30 September
 (£m)

31 December

                                   2022

                                                              2022                                                    2022

 AFFLUENT SEGMENT
 Quilter channel(1)                                           14.8           734        375       15.4                11.5
 IFA channel on Quilter Investment Platform                   52.4           1,000      (103)     54.1                9.2
 Funds via third-party platform                               2.1            53         (152)     2.0                 2.0
 Total Affluent segment core business                         69.3           1,787      120       71.5                22.7

 HIGH NET WORTH SEGMENT
 Quilter channel                                              2.3            182        138       2.4                 2.4
 IFA channel incl. Direct                                     22.6           307        20        23.1                23.1
 Total High Net Worth segment                                 24.9           489        158       25.5                25.5
 Inter-Segment Dual Assets(2)                                 (0.7)          (54)       (36)      (0.8)               (0.2)
 Quilter plc core business                                    93.5           2,222      242       96.2                48.0

 Non-core                                                     3.4            14         (83)      3.4                 2.2

 Quilter plc reported                                         96.9           2,236      159       99.6                50.2

 Affluent AuMA breakdown (incl. Non-core):
 Affluent administered only                                   48.6           997        (48)      50.0
 Affluent managed and administered                            16.0           598        360       17.0
 Affluent external platform                                   8.1            206        (275)     7.9
 (1) For modeling purposes: Quilter channel fourth quarter Platform discrete
 gross flows and net flows were £594 million and £439 million, respectively,
 with closing AuMA of £11.7 billion.

 (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.

 

 

Quilter plc data tables for the full year ended 31 December 2022 (£bn) -
unaudited

 2022 gross flows, net flows & AuMA (£bn), unaudited       AuMA          Gross      Net      AuMA                Of which managed by Quilter

flows

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

31 December

31 December

                        (£m)     2022

                                                           2021                                                  2022

 AFFLUENT SEGMENT
 Quilter channel(1)                                        16.6          3,218      1,636    15.4                11.5
 IFA channel on Quilter Investment Platform                60.0          4,926      445      54.1                9.2
 Funds via third-party platform                            2.5           242        (621)    2.0                 2.0
 Total Affluent segment core business                      79.1          8,386      1,460    71.5                22.7

 HIGH NET WORTH SEGMENT
 Quilter channel                                           2.5           443        353      2.4                 2.4
 IFA channel incl. Direct                                  26.2          1,827      539      23.1                23.1
 Total High Net Worth segment                              28.7          2,270      892      25.5                25.5
 Inter-Segment Dual Assets(2)                              (0.2)         (276)      (230)    (0.8)               (0.2)
 Quilter plc core business                                 107.6         10,380     2,122    96.2                48.0

 Non-core                                                  4.2           149        (335)    3.4                 2.2

 Quilter plc reported                                      111.8         10,529     1,787    99.6                50.2

 Affluent AuMA breakdown (incl. Non-core):
 Affluent administered only                                55.9          4,894      1,027    50.0
 Affluent managed and administered                         17.3          2,621      1,166    17.0
 Affluent external platform                                10.1          1,020      (1,068)  7.9
 (1) For modeling purposes: Quilter channel 2022 Platform discrete gross flows
 and net flows were £2,554 million and £1,823 million, respectively, with
 closing AuMA of £11.7 billion.

 (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.

 

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