Business
Quilter plc - Third Quarter 2024 Trading Statement
Quilter plc - Third Quarter 2024 Trading Statement.
About this update from Quilter Plc
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, annualised) 3.1 2.7 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, annualised) 3.2 2.7 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 as at 30 June 2024 Gross flows (£m) Net flows (£m) AuMA as at 30 September 2024 Of which managed by Quilter AuM as at 30 September 2024 AFFLUENT SEGMENT Q uilter 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 as at 31 December 2023 Gross flows (£m) Net flows (£m) AuMA as at 30 September 2024 Of which managed by Quilter AuM as at 30 September 2024 AFFLUENT SEGMENT Q uilter 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 as at 30 June 2023 Gross flows (£m) Net flows (£m) AuMA as at 30 September 2023 Of which managed by Quilter AuM as at 30 September 2023 AFFLUENT SEGMENT Q uilter 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 as at 31 December 2022 Gross flows (£m) Net flows (£m) AuMA as at 30 September 2023 Of which managed by Quilter AuM as at 30 September 2023 AFFLUENT SEGMENT Q uilter 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.