Quilter plc 4Q 2019 flow statement and PTP update
29 January 2020
Quilter plc
Fourth Quarter 2019 Trading Statement
Quilter plc (the "Group") reports positive Q4 net flows; Platform Transformation Programme remains on schedule.
Highlights
· Assets under Management and Administration ("AuMA") of £110.4 billion at year-end (+13% from 31 December 2018) with growth supported by positive market movements.
· Fourth quarter gross sales of £3.5 billion, 17% higher than the prior year period (£3.0 billion).
· Fourth quarter Net Client Cash Flow inflow ("NCCF") of £0.5 billion, excluding Quilter Life Assurance (Q4 2018: £0.6 billion).
o Quilter Cheviot continued to generate year-on-year gross sales momentum, totalling £0.7 billion in the fourth quarter (Q4 2018:
£0.6 billion). Although the business experienced net outflows of £0.8 billion for the year, reflecting the impact of the previously announced departures of some investment managers, the declining trend in outflows led to a net neutral NCCF out-turn in the fourth quarter.
o Strong fourth quarter performance from Quilter International with gross flows of £0.8 billion (Q4 2018: £0.5 billion).
· Annual NCCF inflow of £0.3 billion, excluding Quilter Life Assurance, reflected a turnaround from the net outflow of £0.2 billion for the nine months to end-September 2019.
· 2019 integrated net flows of £2.6 billion continue to demonstrate the robustness of the Quilter business model (2018: £4.7 billion).
· Platform Transformation Programme update: Initial migration of assets onto the new UK platform is currently planned for the weekend of
22/23 February 2020, with notice given to advisers and customers involved.
|
Quilter plc: Three months ended 31 December 2019 |
|
|
|
Quilter plc excl. Quilter Life Assurance (£bn), unaudited |
Q4 2019 |
Q4 2018 |
|
Gross sales |
3.5 |
3.0 |
|
NCCF |
0.5 |
0.6 |
|
Total integrated net flows |
0.8 |
1.0 |
|
of which Quilter Financial Planning generated |
0.6 |
0.8 |
|
Defined Benefit to Defined Contribution transfers |
0.2 |
0.3 |
Quilter plc: Year ended 31 December 2019
|
Quilter plc excl. Quilter Life Assurance (£bn), unaudited |
2019 |
2018 |
|
Gross sales |
12.3 |
14.2 |
|
NCCF |
0.3 |
4.7 |
|
NCCF/opening AuMA1 |
0% |
5% |
|
Total integrated net flows |
2.6 |
4.7 |
|
of which Quilter Financial Planning generated |
2.6 |
3.8 |
|
|
|
|
|
Quilter plc excl. Quilter Life Assurance (£bn), unaudited |
31 December 2019 |
31 December 2018 |
|
AuMA2 |
110.4 |
97.7 |
1 NCCF as a % of opening AuMA.
2 Following the disposal of Quilter Life Assurance, which completed on 31 December 2019, AuMA includes assets managed and administered on behalf of clients and policyholders only and therefore excludes assets that support shareholder capital and cash requirements. All comparatives have accordingly been restated on this basis.
Paul Feeney, CEO of Quilter plc, commented:
"2019 was a good year for market performance but a challenging year for net client flows. We were pleased to finish the year in a positive position. Net inflows of £0.3 billion for the year represented a sharp turnaround from the net outflow of £0.2 billion for the nine months to end-September.
"Looking across our businesses, the integration of our advice acquisitions is progressing well and both Lighthouse and Charles Derby are well positioned to contribute to net flows in 2020. Quilter Cheviot delivered consistently strong gross sales throughout 2019 reflecting the quality of its franchise supported by the contribution from new hires made to strengthen the business. The outflow associated from the investment managers who departed in mid-2018 declined to £0.3 billion in the fourth quarter from £0.6 billion in the third quarter. Our International business, where new business mandates can be sizeable but inherently more irregular, ended the year well with an annual increase of 67% in NCCF.
"Net flows into Wealth Solutions remain subdued ahead of migrating advisers and customers onto our new UK platform this year. This, in turn, led to more modest flows into Quilter Investors. Stable gross flows in the fourth quarter relative to the prior year demonstrate the strength of our adviser and customer-focussed platform business model. More importantly, we are pleased that the initial migration of customers onto our new platform is currently planned for the weekend of 22/23 February 2020. Our advisers and clients who are involved in this process have been notified accordingly. Our new UK platform will be transformational for Quilter - it has taken time to get to this point and we are excited about the ability to drive further business growth once we have fully migrated onto the new platform by the end of this summer."
|
Quilter plc data tables for the three months ended 31 December 2019 (£bn), unaudited |
||||||
|
Q4 gross flows, net flows & AuMA (£bn)¹ |
AuMA 2019 |
Gross |
Gross outflows |
Net flows |
Market and other movements |
AuMA |
|
|
|
|
|
|
|
|
|
Quilter Investors |
20.2 |
2.0 |
(1.9) |
0.1 |
0.5 |
20.8 |
|
Quilter Cheviot |
23.8 |
0.7 |
(0.7) |
- |
0.4 |
24.2 |
|
Quilter Financial Planning |
0.8 |
- |
- |
- |
- |
0.8 |
|
Advice & Wealth Management |
44.8 |
2.7 |
(2.6) |
0.1 |
0.9 |
45.8 |
|
|
|
|
|
|
|
|
|
Quilter Wealth Solutions |
55.7 |
1.6 |
(1.3) |
0.3 |
1.2 |
57.2 |
|
Quilter International |
20.2 |
0.8 |
(0.5) |
0.3 |
- |
20.5 |
|
Wealth Platforms |
75.9 |
2.4 |
(1.8) |
0.6 |
1.2 |
77.7 |
|
|
|
|
|
|
|
|
|
Elimination of intra-group assets |
(12.5) |
(1.6) |
1.4 |
(0.2) |
(0.4) |
(13.1) |
|
|
|
|
|
|
|
|
|
Quilter plc excl. Quilter Life Assurance |
108.2 |
3.5 |
(3.0) |
0.5 |
1.7 |
110.4 |
|
Quilter Life Assurance |
10.3 |
- |
(1.2) |
(1.2) |
(9.1) |
- |
|
|
|
|
|
|
|
|
|
|
AuMA 2018 |
Gross |
Gross outflows |
Net flows |
Market and other movements |
AuMA |
|
|
|
|
|
|
|
|
|
Quilter Investors |
18.6 |
1.1 |
(0.6) |
0.5 |
(1.4) |
17.7 |
|
Quilter Cheviot |
24.2 |
0.6 |
(0.5) |
0.1 |
(2.1) |
22.2 |
|
Quilter Financial Planning |
1.0 |
- |
- |
- |
(0.2) |
0.8 |
|
Advice & Wealth Management |
43.8 |
1.7 |
(1.1) |
0.6 |
(3.7) |
40.7 |
|
|
|
|
|
|
|
|
|
Quilter Wealth Solutions |
52.9 |
1.6 |
(1.2) |
0.4 |
(3.9) |
49.4 |
|
Quilter International |
19.5 |
0.5 |
(0.3) |
0.2 |
(1.4) |
18.3 |
|
Wealth Platforms |
72.4 |
2.1 |
(1.5) |
0.6 |
(5.3) |
67.7 |
|
|
|
|
|
|
|
|
|
Elimination of intra-group assets |
(11.0) |
(0.8) |
0.4 |
(0.4) |
0.7 |
(10.7) |
|
|
|
|
|
|
|
|
|
Quilter plc excl. Quilter Life Assurance |
105.2 |
3.0 |
(2.2) |
0.8 |
(8.3) |
97.7 |
|
Quilter Life Assurance |
12.9 |
0.2 |
(1.0) |
(0.8) |
(0.9) |
11.2 |
1 Following the disposal of Quilter Life Assurance, which completed on 31 December 2019, AuMA includes assets managed and administered on behalf of clients and policyholders only and therefore excludes assets that support shareholder capital and cash requirements. All comparatives have accordingly been restated on this basis
|
Quilter plc data tables for the twelve months ended 31 December 2019 (£bn), unaudited |
||||||
|
Full year gross flows, net flows & AuMA |
AuMA |
Gross |
Gross outflows |
Net flows |
Market and other movements |
AuMA |
|
|
|
|
|
|
|
|
|
Quilter Investors |
17.7 |
4.9 |
(4.4) |
0.5 |
2.6 |
20.8 |
|
Quilter Cheviot |
22.2 |
2.6 |
(3.4) |
(0.8) |
2.8 |
24.2 |
|
Quilter Financial Planning |
0.8 |
- |
- |
- |
- |
0.8 |
|
Advice & Wealth Management |
40.7 |
7.5 |
(7.8) |
(0.3) |
5.4 |
45.8 |
|
|
|
|
|
|
|
|
|
Quilter Wealth Solutions |
49.4 |
6.0 |
(5.1) |
0.9 |
6.9 |
57.2 |
|
Quilter International |
18.3 |
2.0 |
(1.5) |
0.5 |
1.7 |
20.5 |
|
Wealth Platforms |
67.7 |
8.0 |
(6.6) |
1.4 |
8.6 |
77.4 |
|
|
|
|
|
|
|
|
|
Elimination of intra-group assets |
(10.7) |
(3.2) |
2.4 |
(0.8) |
(1.6) |
(13.1) |
|
|
|
|
|
|
|
|
|
Quilter plc excl. Quilter Life Assurance |
97.7 |
12.3 |
(12.0) |
0.3 |
12.4 |
110.4 |
|
Quilter Life Assurance |
11.2 |
0.4 |
(3.9) |
(3.5) |
(7.7) |
- |
|
|
|
|
|
|
|
|
|
|
AuMA |
Gross |
Gross outflows |
Net flows |
Market and other movements |
AuMA |
|
|
|
|
|
|
|
|
|
Quilter Investors |
16.7 |
5.5 |
(2.7) |
2.8 |
(1.8) |
17.7 |
|
Quilter Cheviot |
23.5 |
2.5 |
(1.8) |
0.7 |
(2.0) |
22.2 |
|
Quilter Financial Planning |
1.1 |
- |
- |
- |
(0.3) |
0.8 |
|
Advice & Wealth Management |
41.3 |
8.0 |
(4.5) |
3.5 |
(4.1) |
40.7 |
|
|
|
|
|
|
|
|
|
Quilter Wealth Solutions |
49.6 |
7.7 |
(4.6) |
3.1 |
(3.3) |
49.4 |
|
Quilter International |
19.2 |
1.8 |
(1.5) |
0.3 |
(1.2) |
18.3 |
|
Wealth Platforms |
68.8 |
9.5 |
(6.1) |
3.4 |
(4.5) |
67.7 |
|
|
|
|
|
|
|
|
|
Elimination of intra-group assets |
(9.8) |
(3.3) |
1.1 |
(2.2) |
1.3 |
(10.7) |
|
|
|
|
|
|
|
|
|
Quilter plc excl. Quilter Life Assurance |
100.3 |
14.2 |
(9.5) |
4.7 |
(7.3) |
97.7 |
|
Quilter Life Assurance |
14.6 |
0.6 |
(2.9) |
(2.3) |
(1.1) |
11.2 |
1 Following the disposal of Quilter Life Assurance, which completed on 31 December 2019, AuMA includes assets managed and administered on behalf of clients and policyholders only and therefore excludes assets that support shareholder capital and cash requirements. All comparatives have accordingly been restated on this basis.
Enquiries
Investor Relations:
John-Paul Crutchley +44 (0)20 7002 7016
Keilah Codd +44 (0)20 7002 7054
Media:
Jane Goodland +44 (0)7790 012 066
Tim Skelton-Smith +44 (0)7824 145 076
Camarco
Geoffrey Pelham-Lane +44 (0)20 3757 4985
Aprio (South Africa)
Julian Gwillim +27 (0)11 880 0037
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 £110.4 billion in customer investments (as at 31 December 2019).
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: Advice and Wealth Management and Wealth Platforms.
Advice and Wealth Management encompasses the financial planning businesses, Quilter Financial Planning, Quilter Private Client Advisers and Quilter Financial Advisers; the discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business. Wealth Platforms includes the Old Mutual Wealth UK Platform and Quilter International.
|
Since its IPO in June 2018, the Group's businesses have progressively re-branded to Quilter. The UK Platform will be the final business to rebrand; this will follow the safe delivery of the new platform technology. Descriptor for re-branded business units: |
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Previous |
New |
|
Intrinsic |
Quilter Financial Planning |
|
Old Mutual Wealth Private Client Advisers |
Quilter Private Client Advisers |
|
Quilter Investors |
Quilter Investors |
|
Quilter Cheviot |
Quilter Cheviot |
|
UK Platform |
Quilter Wealth Solutions |
|
International |
Quilter International |
|
Heritage |
Quilter Life Assurance |
Disclaimer
This announcement may contain certain forward-looking statements with respect to certain of 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.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
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