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, annualised)
|
3.3
|
2.7
|
|
|
|
|
|
|
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
as at
31 December
2023
|
Gross
flows
(£m)
|
Net
flows
(£m)
|
AuMA
as at
31 March
2024
|
Of which managed by
Quilter
AuM as at
31 March
2024
|
|
|
|
|
|
|
AFFLUENT SEGMENT
|
|
|
|
|
|
Quilter
channel1
|
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 Assets2
|
(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-Total3
|
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.
3The 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
as at
31 December
2022
|
Gross
flows
(£m)
|
Net
flows
(£m)
|
AuMA
as at
31 March
2023
|
Of which managed by
Quilter
AuM as at
31 March
2023
|
|
|
|
|
|
|
AFFLUENT SEGMENT
|
|
|
|
|
|
Quilter
channel1
|
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 Assets2
|
(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-Total3
|
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.
3The Quilter Platform includes £1m of gross flows, £21m of net
outflows and £1.2bn of closing AuA related to non-core
assets.
|