Business
Quilter plc - 2024 Q4 Trading Update
Quilter plc - 2024 Q4 Trading Update.
About this update from Quilter Plc
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, annualised) 3.3 2.9 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 as at 30 September 2024 Gross inflows (£m) Net flows (£m) AuMA as at 31 December 2024 Of which managed by Quilter AuM as at 31 December 2024 AFFLUENT SEGMENT Q uilter 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 as at 31 December 2023 Gross inflows (£m) Net flows (£m) AuMA as at 31 December 2024 Of which managed by Quilter AuM as at 31 December 2024 AFFLUENT SEGMENT Q uilter 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 as at 30 September 2023 Gross inflows (£m) Net flows (£m) AuMA as at 31 December 2023 Of which managed by Quilter AuM as at 31 December 2023 AFFLUENT SEGMENT Q uilter 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 as at 31 December 2022 Gross inflows (£m) Net flows (£m) AuMA as at 31 December 2023 Of which managed by Quilter AuM as at 31 December 2023 AFFLUENT SEGMENT Q uilter 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.