Quilter plc Q3 2018 flows update

RNS Number : 9601E

Quilter PLC

24 October 2018

 

24 October 2018

QUILTER PLC REPORTS SOLID NCCF FOR Q3

Highlights

·      Third quarter Net Client Cash Flow (NCCF) of £1.1 billion, excluding Quilter Life Assurance, was marginally ahead of the second quarter but below the high level achieved in Q3 2017, when market activity was significantly more buoyant.

·      Year to date NCCF of £4.1 billion, represents 5% of opening Assets under Management and Administration (AuMA) on an annualised basis.

·      Steady growth in AuMA to £118.1 billion despite mixed global market performance (up 3% year to date and up 1.4% from 30 June 2018 despite a decline of 1.7% in the FTSE 100 Index during the third quarter).

·      £0.9 billion of integrated flows delivered during the quarter (of which £0.8 billion was from Quilter Financial Planning and Private Client Advisers). Total integrated flows of £3.0 billion year to date (+7%) further demonstrating the strength of our advice based business model.

     Quilter plc highlights for the nine months ended 30 September 2018

Quilter plc (£bn)	Q3 2018 YTD	Q3 2017 YTD
NCCF	2.7	4.5
NCCF (excluding Quilter Life Assurance)	4.1	5.3
NCCF/opening AuMA (excluding Quilter Life Assurance)1	5%	8%
Gross Sales	11.5	12.7
Total integrated net flows (excluding Quilter Life Assurance)	3.7	3.8
Of which Quilter Financial Planning & Private Client Advisers generated	3.0	2.8
	30 September 2018	31 December 2017
Assets under Management/Administration (AuMA)	118.1	114.4
1 NCCF (annualised) as a % of opening AuMA (excluding Quilter Life Assurance)
Quilter plc highlights for the three months ended 30 September 2018
Quilter plc (£bn)	Q3 2018	Q3 2017
NCCF	0.5	1.3
NCCF (excluding Quilter Life Assurance)	1.1	1.9
Gross Sales	3.4	4.1
Total integrated net flows (excluding Quilter Life Assurance)	0.9	1.4
Of which Quilter Financial Planning & Private Client Advisers generated	0.8	1.0

Paul Feeney, CEO of Quilter plc, commented:

"Over the last quarter more volatile investment markets and geopolitical uncertainty have contributed to weaker investor sentiment resulting in a market-wide reduction in net retail flows. Year to date flows across the market are down 55% on the comparable period according to the Investment Association. Against this backdrop, I am pleased to report continued solid performance in NCCF of £1.1 billion (excluding Quilter Life Assurance) in the third quarter, marginally ahead of the second quarter. Worthy of note is the more cautious approach both we and the advisers who use our platform have taken towards defined benefit to defined contribution pension transfers. These totalled £0.3 billion in the third quarter of 2018 versus £0.6 billion in the comparable period of 2017.

Gross flows into Quilter Investors of £4.3 billion year to date were up 10% on a year earlier and gross sales within Quilter Wealth Solutions, our UK platform business, remained strong at £6.1 billion year to date, down 9% on the prior year despite the factors referenced earlier. This demonstrates the benefit of having both a substantial adviser workforce and an open channel actively supporting over 4,000 IFAs. We remain confident in the long term prospects for our business model. We look forward to reporting our full year results in March 2019."

Quilter plc data tables for the nine months ended 30 September 2018 (£bn)
	AuMA as at 31 December 2017	Gross inflows	Gross outflows	Net flows	Market and other movements	AuMA as at 30 September 2018
Quilter Investors	16.9	4.3	(2.0)	2.3	(0.4)	18.8
Quilter Cheviot	23.6	2.0	(1.4)	0.6	0.2	24.4
Quilter Financial Planning	1.2	-	-	-	(0.1)	1.1
Advice & Wealth Management	41.7	6.3	(3.4)	2.9	(0.3)	44.3
Quilter Wealth Solutions	50.2	6.1	(3.4)	2.7	0.5	53.4
Quilter International	19.3	1.3	(1.2)	0.1	0.2	19.6
Quilter Life Assurance1	15.3	0.4	(1.9)	(1.5)	0.2	14.0
Wealth Platforms	84.8	7.8	(6.5)	1.3	0.9	87.0
Elimination of intra-group assets	(12.1)	(2.6)	1.1	(1.5)	0.4	(13.2)
Quilter plc	114.4	11.5	(8.8)	2.7	1.0	118.1
	AuMA as at 31 December 2016	Gross inflows	Gross outflows	Net flows	Market and other movements	AuMA as at 30 September 2017
Quilter Investors	12.1	3.9	(1.5)	2.4	0.8	15.3
Quilter Cheviot	20.7	2.2	(1.2)	1.0	1.3	23.0
Quilter Financial Planning	-	-	-	-	1.2	1.2
Advice & Wealth Management	32.8	6.1	(2.7)	3.4	3.3	39.5
Quilter Wealth Solutions	41.4	6.7	(3.4)	3.3	2.9	47.6
Quilter International	16.9	1.5	(0.9)	0.6	0.5	18.0
Quilter Life Assurance1	15.5	1.0	(2.2)	(1.2)	0.8	15.1
Wealth Platforms	73.8	9.2	(6.5)	2.7	4.2	80.7
Elimination of intra-group assets	(8.4)	(2.6)	1.0	(1.6)	(0.6)	(10.6)
Quilter plc	98.2	12.7	(8.2)	4.5	6.9	109.6
1 Includes other shareholder AuMA of £0.4bn included in Q3 2018 (Q4 2017: £0.2bn, Q4 2016: £0.2bn and Q3 2017: £0.1bn).

 

Quilter plc data tables for the three months ended 30 September 2018 (£bn)
	AuMA as at 30 June 2018	Gross inflows	Gross outflows	Net flows	Market and other movements	AuMA as at 30 September 2018
Quilter Investors	18.4	1.3	(0.8)	0.5	(0.1)	18.8
Quilter Cheviot	24.1	0.5	(0.4)	0.1	0.2	24.4
Quilter Financial Planning	1.2	-	-	-	(0.1)	1.1
Advice & Wealth Management	43.7	1.8	(1.2)	0.6	-	44.3
Quilter Wealth Solutions	52.3	1.8	(1.2)	0.6	0.5	53.4
Quilter International	19.2	0.4	(0.4)	-	0.4	19.6
Quilter Life Assurance1	14.5	0.1	(0.6)	(0.5)	-	14.0
Wealth Platforms	86.0	2.3	(2.2)	0.1	0.9	87.0
Elimination of intra-group assets	(13.2)	(0.7)	0.5	(0.2)	0.2	(13.2)
Quilter plc	116.5	3.4	(2.9)	0.5	1.1	118.1
	AuMA as at 30 June 2017	Gross inflows	Gross outflows	Net flows	Market and other movements	AuMA as at 30 September 2017
Quilter Investors	14.1	1.4	(0.5)	0.9	0.3	15.3
Quilter Cheviot	22.5	0.7	(0.3)	0.4	0.1	23.0
Quilter Financial Planning	1.2	-	-	-	-	1.2
Advice & Wealth Management	37.8	2.1	(0.8)	1.3	0.4	39.5
Quilter Wealth Solutions	45.9	2.3	(1.1)	1.2	0.5	47.6
Quilter International	17.8	0.4	(0.2)	0.2	-	18.0
Quilter Life Assurance1	15.6	0.2	(0.9)	(0.7)	0.2	15.1
Wealth Platforms	79.3	2.9	(2.2)	0.7	0.7	80.7
Elimination of intra-group assets	(9.8)	(0.9)	0.2	(0.7)	(0.1)	(10.6)
Quilter plc	107.3	4.1	(2.8)	1.3	1.0	109.6
1 Other shareholder AuMA of £0.4bn included in Q3 2018 (Q2 2018: £0.4bn, Q2 2017: £nil and Q3 2017: £0.1bn).

Business unit descriptor:
Previous	New
Intrinsic	Quilter Financial Planning
Old Mutual Wealth Private Client Advisers	Quilter Private Client Advisers
UK Platform	Quilter Wealth Solutions
International	Quilter International
Heritage	Quilter Life Assurance

Enquiries

Investor Relations
John-Paul Crutchley	UK	[phone]
Media
Vee Montebello	UK	[phone]
Camarco
Geoffrey Pelham-Lane	UK	+ 44 20 3757 4985
Aprio (South Africa)
Julian Gwillim	SA	+ 27 11 880 0037

Disclaimer

This announcement may contain certain 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, 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.

Nothing in this announcement should be construed as a profit forecast.

 

END

 

 

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