Quilter plc - Third Quarter 2021 Trading Update
3 November 2021
Quilter plc
Third Quarter 2021 Trading Statement
Quilter plc reports a strong quarter with substantially improved year-on-year net flows
Business Update
Quilter will be hosting a Capital Markets Day for investors later today which will introduce a reorganisation of the Group into two client focussed segments: High Net Worth ("HNW") and Affluent. Furthermore, assets and flows will be disclosed from the two primary distribution channels of the business: the Quilter channel and the IFA channel. As a result, the Group now discloses flows by these segments and distribution channels. Third quarter flows have been presented in this format on a continuing business basis, excluding the contribution from Quilter International. The sale of Quilter International is still anticipated to complete prior to year-end. Third quarter disclosure on a historic basis is included as an appendix to this release. A full breakdown of quarterly flows on the new reported basis since 1 January 2020 is provided as an appendix to the separate Capital Markets Day announcement, also published today.
Continuing business highlights:
· Assets under Management and Administration ("AuMA") of £108.5 billion at the end of September 2021, with:
o Year-to-date net inflows of £3.0 billion (2020: £1.1 billion).
o Third quarter net inflows of £1.0 billion (2020: £0.1 billion).
· Strong flows onto the Quilter Investment Platform. Year-to-date gross flows of £6.7 billion, up 58% (2020: £4.3 billion) and higher net flows of £2.7 billion, up 142% (2020: £1.1 billion), supported by increased IFA usage of the new Quilter platform with year-to-date net flows up nearly five-fold to £1.4 billion in the IFA channel.
· Stable levels of Defined Benefit to Defined Contribution transfers in the third quarter of £0.2 billion.
Total business highlights:
· AuMA of £129.1 billion at the end of September 2021, with net year-to-date flows of £3.0 billion and third quarter flows of £1.2 billion.
|
Quilter plc: Three months ended 30 September 2021 |
|
|
|
Quilter plc (£bn), unaudited, continuing business |
Q3 2021 |
Q3 2020 |
|
AuMA |
108.5 |
91.7 |
|
Of which are administered by the Quilter Investment Platform |
71.0 |
58.9 |
|
Of which are managed by Quilter Investors |
25.2 |
21.3 |
|
Of which are in Quilter Cheviot |
27.6 |
23.6 |
|
|
|
|
|
Gross flow |
3.3 |
2.2 |
|
Net flow |
1.0 |
0.1 |
|
Defined Benefit to Defined Contribution transfers |
0.2 |
0.2 |
|
|
|
|
|
Quilter plc: Nine months ended 30 September 2021 |
|
|
|
Quilter plc (£bn), unaudited, continuing business |
Q3 2021 |
Q3 2020 |
|
AuMA |
108.5 |
91.7 |
|
Gross flow |
9.9 |
7.4 |
|
Net flow |
3.0 |
1.1 |
|
Defined Benefit to Defined Contribution transfers |
0.5 |
0.7 |
Paul Feeney, CEO of Quilter plc, commented:
"I am delighted with the significant improvement in our third quarter net flows which were up ten-fold to £1.0 billion from £0.1 billion in 2020. Excellent growth in flows from our advisers has been coupled with a very substantial increase in flows from the IFA channel who have taken extremely well to our new platform. Gross flows from the IFA channel onto our UK Platform were 66% year-on-year to £4.8 billion, with net flows up nearly five-fold to £1.4 billion on the comparable period. We look forward to presenting our plans and ambitious targets to drive growth and efficiency across our business at our Capital Markets Day, later this morning."
|
Q3 gross flows, net flows & AuMA (£bn) |
AuMA 2021 |
Gross |
Net flows (£m) |
AuMA as at 30 September 2021 |
Of which Quilter solutions
AuM |
|
|
|
|
|
|
|
|
AFFLUENT SEGMENT |
|
|
|
|
|
|
Quilter channel |
10.8 |
654 |
469 |
11.3 |
7.4 |
|
IFA channel |
57.2 |
1,551 |
421 |
58.3 |
7.4 |
|
Non-core business |
1.4 |
20 |
(9) |
1.4 |
0.2 |
|
Sub-total (Quilter Platform) |
69.4 |
2,225 |
881 |
71.0 |
15.0 |
|
Via other platforms |
|
|
|
|
|
|
Quilter channel |
4.7 |
185 |
1 |
4.7 |
5.0 |
|
IFA channel |
2.5 |
87 |
(112) |
2.5 |
2.5 |
|
Non-core businesses |
2.8 |
48 |
(81) |
2.7 |
2.7 |
|
Sub-total |
10.0 |
320 |
(192) |
9.9 |
10.2 |
|
Total Affluent Segment |
79.4 |
2,545 |
689 |
80.9 |
25.2 |
|
|
|
|
|
|
|
|
HIGH NET WORTH SEGMENT |
|
|
|
|
|
|
Quilter channel |
2.3 |
98 |
73 |
2.4 |
2.4 |
|
IFA channel incl. Direct |
24.7 |
608 |
256 |
25.2 |
25.2 |
|
Total High Net Worth Segment |
27.0 |
706 |
329 |
27.6 |
27.6 |
|
|
|
|
|
|
|
|
Continuing operations |
106.4 |
3,251 |
1,018 |
108.5 |
52.8 |
|
|
|
|
|
|
|
|
AuMA breakdown: |
|
|
|
|
|
|
Affluent administered (Quilter Platform) |
69.4 |
2,225 |
881 |
71.0 |
15.0 |
|
Affluent managed (Quilter Investors) |
24.8 |
1,268 |
98 |
25.2 |
25.2 |
|
HNW managed and administered (Quilter Cheviot) |
27.0 |
706 |
329 |
27.6 |
27.6 |
|
|
|
|
|
|
|
|
Quilter channel |
17.8 |
937 |
543 |
18.4 |
14.8 |
|
IFA channel |
84.4 |
2,246 |
565 |
86.0 |
35.1 |
|
Non-core business |
4.2 |
68 |
(90) |
4.1 |
2.9 |
|
|
|
|||||
|
YTD Q3 gross flows, net flows & AuMA (£bn) |
AuMA 2020 |
Gross |
Net flows (£m) |
AuMA as at 30 September 2021 |
Of which Quilter solutions
AuM |
|
|
|
|
|
|
|
|
|
|
AFFLUENT SEGMENT |
|
|
|
|
|
|
|
Q uilter channel |
9.6 |
1,915 |
1,337 |
11.3 |
7.4 |
|
|
IFA channel |
52.8 |
4,760 |
1,371 |
58.3 |
7.4 |
|
|
Non-core business |
1.4 |
63 |
(28) |
1.4 |
0.2 |
|
|
Sub-total (Quilter Platform) |
63.8 |
6,738 |
2,680 |
71.0 |
15.0 |
|
|
Via other platforms |
|
|
|
|
|
|
|
Quilter channel |
4.7 |
752 |
181 |
4.7 |
5.0 |
|
|
IFA channel |
2.4 |
226 |
(345) |
2.5 |
2.5 |
|
|
Non-core businesses |
2.8 |
144 |
(276) |
2.7 |
2.7 |
|
|
Sub-total |
9.9 |
1,122 |
(440) |
9.9 |
10.2 |
|
|
Total Affluent Segment |
73.7 |
7,860 |
2,240 |
80.9 |
25.2 |
|
|
|
|
|
|
|
|
|
|
HIGH NET WORTH SEGMENT |
|
|
|
|
|
|
|
Quilter channel |
2.1 |
366 |
290 |
2.4 |
2.4 |
|
|
IFA channel incl. Direct |
23.2 |
1,696 |
487 |
25.2 |
25.2 |
|
|
Total High Net Worth Segment |
25.3 |
2,062 |
777 |
27.6 |
27.6 |
|
|
|
|
|
|
|
|
|
|
Continuing operations |
99.0 |
9,922 |
3,017 |
108.5 |
52.8 |
|
|
|
|
|
|
|
|
|
|
AuMA breakdown: |
|
|
|
|
|
|
|
Affluent administered (Quilter Platform) |
63.8 |
6,738 |
2,680 |
71.0 |
15.0 |
|
|
Affluent managed (Quilter Investors) |
23.2 |
4,151 |
529 |
25.2 |
25.2 |
|
|
HNW managed and administered (Quilter Cheviot) |
25.3 |
2,062 |
777 |
27.6 |
27.6 |
|
|
|
|
|
|
|
|
|
|
Quilter channel |
16.4 |
3,033 |
1,808 |
18.4 |
14.8 |
|
|
IFA channel |
78.4 |
6,682 |
1,513 |
86.0 |
35.1 |
|
|
Non-core business |
4.2 |
207 |
(304) |
4.1 |
2.9 |
|
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)20 3757 4985
Company Secretary:
Patrick Gonsalves +44 (0)20 7778 9670
About Quilter plc
Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow. Quilter plc oversees £108.5 billion in customer investments (as at 30 September 2021).
It has an adviser and customer offering spanning: financial advice, investment platforms, multi-asset investment solutions, and discretionary fund management.
The business is being reorganised into 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 Private Client Advisers.
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.
Appendix - Third quarter flow disclosure on historic disclosure basis
|
Quilter plc data tables for the three months ended 30 September 2021 (£bn) |
||||||
|
Q3 gross flows, net flows & AuMA (£bn) |
AuMA 2021 |
Gross |
Gross outflows |
Net flows |
Market and other movements |
AuMA |
|
|
|
|
|
|
|
|
|
Quilter Investors |
24.8 |
1.3 |
(1.2) |
0.1 |
0.3 |
25.2 |
|
Quilter Cheviot |
27.0 |
0.8 |
(0.4) |
0.4 |
0.2 |
27.6 |
|
Advice & Wealth Management |
51.8 |
2.1 |
(1.6) |
0.5 |
0.5 |
52.8 |
|
|
|
|
|
|
|
|
|
Quilter Investment Platform |
69.4 |
2.2 |
(1.3) |
0.9 |
0.7 |
71.0 |
|
Wealth Platforms |
69.4 |
2.2 |
(1.3) |
0.9 |
0.7 |
71.0 |
|
Elimination of intra-group assets |
(14.8) |
(1.0) |
0.6 |
(0.4) |
(0.1) |
(15.3) |
|
Continuing operations |
106.4 |
3.3 |
(2.3) |
1.0 |
1.1 |
108.5 |
|
|
|
|
|
|
|
|
|
Quilter International |
23.2 |
0.6 |
(0.4) |
0.2 |
0.2 |
23.6 |
|
|
|
|
|
|
|
|
|
Quilter plc |
126.6 |
3.7 |
(2.5) |
1.2 |
1.3 |
129.1 |
|
|
|
|
|
|
|
|
|
|
AuMA 2020 |
Gross |
Gross outflows |
Net flows |
Market and other movements |
AuMA |
|
|
|
|
|
|
|
|
|
Quilter Investors |
20.8 |
1.1 |
(1.1) |
- |
0.5 |
21.3 |
|
Quilter Cheviot |
23.3 |
0.5 |
(0.5) |
- |
0.3 |
23.6 |
|
Advice & Wealth Management |
44.1 |
1.6 |
(1.6) |
- |
0.8 |
44.9 |
|
|
|
|
|
|
|
|
|
Quilter Investment Platform |
57.5 |
1.2 |
(1.1) |
0.1 |
1.3 |
58.9 |
|
Wealth Platforms |
57.5 |
1.2 |
(1.1) |
0.1 |
1.3 |
58.9 |
|
Elimination of intra-group assets |
(11.9) |
(0.6) |
0.6 |
- |
(0.2) |
(12.1) |
|
Continuing operations |
89.7 |
2.2 |
(2.1) |
0.1 |
1.9 |
91.7 |
|
|
|
|
|
|
|
|
|
Quilter International |
20.4 |
0.3 |
(0.3) |
- |
0.2 |
20.6 |
|
|
|
|
|
|
|
|
|
Quilter plc¹ |
107.4 |
2.7 |
(2.6) |
0.1 |
2.0 |
109.5 |
1 Quilter plc includes AuMA managed by Quilter International that is held on the Quilter Investment Platform, which are recognised in Quilter Investment Platform under continuing operations (H1 2020 : £1.3bn, Q3 2020 : £1.3bn. H1 2021 : £1.4bn, Q3 2021 : £1.4bn), and includes elimination relating to Quilter International (H1 2020 : £1.4bn, Q3 2020 : £1.5bn. H1 2021 : £1.6bn, Q3 2021 : £1.6bn).
|
Quilter plc data tables for the nine months ended 30 September 2021 (£bn) |
||||||
|
Gross flows, net flows & AuMA (£bn) |
AuMA 2020 |
Gross |
Gross outflows |
Net flows |
Market and other movements |
AuMA |
|
|
|
|
|
|
|
|
|
Quilter Investors |
23.2 |
4.2 |
(3.7) |
0.5 |
1.5 |
25.2 |
|
Quilter Cheviot |
25.3 |
2.1 |
(1.3) |
0.8 |
1.5 |
27.6 |
|
Advice & Wealth Management |
48.5 |
6.3 |
(5.0) |
1.3 |
3.0 |
52.8 |
|
|
|
|
|
|
|
|
|
Quilter Investment Platform |
63.8 |
6.7 |
(4.0) |
2.7 |
4.5 |
71.0 |
|
Wealth Platforms |
63.8 |
6.7 |
(4.0) |
2.7 |
4.5 |
71.0 |
|
Elimination of intra-group assets |
(13.3) |
(3.1) |
2.1 |
(1.0) |
(1.0) |
(15.3) |
|
Continuing operations |
99.0 |
9.9 |
(6.9) |
3.0 |
6.5 |
108.5 |
|
|
|
|
|
|
|
|
|
Quilter International |
21.8 |
1.7 |
(1.1) |
0.6 |
1.2 |
23.6 |
|
|
|
|
|
|
|
|
|
Quilter plc |
117.8 |
11.4 |
(7.7) |
3.7 |
7.6 |
129.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AuMA 2019 |
Gross |
Gross outflows |
Net flows |
Market and other movements |
AuMA |
|
|
|
|
|
|
|
|
|
Quilter Investors |
21.6 |
3.7 |
(3.5) |
0.2 |
(0.5) |
21.3 |
|
Quilter Cheviot |
24.2 |
1.7 |
(1.5) |
0.2 |
(0.8) |
23.6 |
|
Advice & Wealth Management |
45.8 |
5.4 |
(5.0 ) |
0.4 |
(1.3) |
44. 9 |
|
|
|
|
|
|
|
|
|
Quilter Investment Platform |
58.6 |
4.3 |
(3.2) |
1.1 |
(0.8) |
58.9 |
|
Wealth Platforms |
58.6 |
4.3 |
(3.2) |
1.1 |
(0.8) |
58.9 |
|
Elimination of intra-group assets |
(11.9) |
(2.3) |
1.9 |
(0.4) |
0.2 |
(12.1) |
|
Continuing operations |
92.5 |
7.4 |
(6.3 ) |
1.1 |
(1.9) |
91.7 |
|
|
|
|
|
|
|
|
|
Quilter International |
20.5 |
1.1 |
(0.9) |
0.2 |
(0.1) |
20.6 |
|
|
|
|
|
|
|
|
|
Quilter plc¹ |
110.4 |
8.1 |
(6.9 ) |
1.2 |
(2.1) |
109.5 |
1 Quilter plc includes AuMA managed by Quilter International that is held on the Quilter Investment Platform, which are recognised in Quilter Investment Platform under continuing operations (FY 2019 : £1.4bn, Q3 2020 : £1.3bn. FY 2020 : £1.4bn, Q3 2021 : £1.4bn), and includes elimination relating to Quilter International (FY 2019 : £1.2bn, Q3 2020 : £1.5bn. FY 2020 : £1.6bn, Q3 2021 : £1.6bn).
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