REG - Quilter PLC - Quilter plc - Third Quarter 2024 Trading Statement

QuilterAnnouncement

16/10/2024 07:00

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RNS Number : 3187I  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,   3.1      2.7
 annualised)

 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,   3.2      2.7
 annualised)

 

 

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
+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 £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      Gross      Net     AuMA             Of which managed by Quilter

flows

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

 30 September

                                                              30 June              (£m)
                30 September

                            2024

                                                              2024                                          2024

 AFFLUENT SEGMENT
 Quilter channel(1)                                           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 Assets(2)                                 (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-Total(3)                                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.

 (3)The 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          Gross      Net       AuMA           Of which managed by Quilter

flows

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

31 December
 (£m)

30 September

                                  30 September

                                                               2023
              2024
                                                                                                  2024

 AFFLUENT SEGMENT
 Quilter channel(1)                                            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 Assets(2)                                  (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-Total(3)                                 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.

 (3)The 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      Gross      Net     AuMA             Of which managed by Quilter

flows

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

 30 September

                                                              30 June              (£m)
                30 September

                            2023

                                                              2023                                          2023

 AFFLUENT SEGMENT
 Quilter channel(1)                                           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 Assets(2)                                 (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-Total(3)                                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.

 (3)The 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          Gross      Net       AuMA           Of which managed by Quilter

flows

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

31 December
 (£m)

30 September

                                  30 September

                                                               2022
              2023
                                                                                                  2023

 AFFLUENT SEGMENT
 Quilter channel(1)                                            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 Assets(2)                                  (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-Total(3)                                 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.

 (3)The 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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