Quilter plc Q3 2019 trading statement
23 October 2019
Quilter plc
Third Quarter 2019 Trading Statement
Quilter plc (the "Group") reports strong AuMA growth, resilient gross flows and stable quarter on quarter NCCF in a challenging market
Highlights
· Assets under Management and Administration ("AuMA") of £118.7 billion at quarter-end (+9% from 31 December 2018) with growth supported by positive market performance.
o AuMA from continuing operations of £109.8 billion, +11% from 31 December 2018.
· Third quarter gross sales of £3.0 billion, 12% lower on the prior year period, bringing year to date gross sales to £9.0 billion.
· Third quarter Net Client Cash Flow ("NCCF") outflow of £0.5 billion, excluding Quilter Life Assurance, after outflows of £0.6 billion within the quarter from previously notified Investment Manager departures within Quilter Cheviot.
· Year to date NCCF outflow of £0.2 billion, excluding Quilter Life Assurance, after outflows totalling £1.4 billion arose from the Investment Manager departures within Quilter Cheviot and the loss of a quasi-institutional mandate.
· Integrated net flows of £1.7 billion year to date continue to demonstrate the robustness of the Quilter business model.
· Sale of Quilter Life Assurance to ReAssure for 120% of pro forma end 2018 own funds anticipated to close prior to year-end; an update on the prospective return of a meaningful portion of net sale proceeds to shareholders will be provided around this time. Net outflows of £2.3 billion year to date in line with expectations.
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Quilter plc highlights for the three months ended 30 September 2019 |
|
|
|
Quilter plc (£bn) |
Q3 2019 |
Q3 2018 |
|
Gross sales |
3.0 |
3.4 |
|
NCCF |
(1.4) |
0.5 |
|
NCCF (excluding Quilter Life Assurance) |
(0.5) |
1.1 |
|
Total integrated net flows (excluding Quilter Life Assurance) |
0.4 |
0.9 |
|
of which Quilter Financial Planning generated |
0.5 |
0.8 |
|
Defined Benefit to Defined Contribution transfers |
0.2 |
0.3 |
| Quilter plc highlights for the nine months ended 30 September 2019 | ||
|
Quilter plc (£bn) |
Q3 2019 YTD |
Q3 2018 YTD |
|
Gross sales |
9.0 |
11.5 |
|
NCCF |
(2.3) |
2.7 |
|
NCCF (excluding Quilter Life Assurance) |
(0.2) |
4.1 |
|
NCCF/opening AuMA (excluding Quilter Life Assurance)1 |
0% |
5% |
|
Total integrated net flows (excluding Quilter Life Assurance) |
1.7 |
3.7 |
|
of which Quilter Financial Planning generated |
1.8 |
3.0 |
|
|
|
|
|
Quilter plc (£bn) |
30 September 2019 |
31 December 2018 |
|
AuMA |
118.7 |
109.3 |
|
AuMA (excluding Quilter Life Assurance) |
109.8 |
99.3 |
|
1 NCCF (annualised) as a % of opening AuMA (excluding Quilter Life Assurance). |
|
|
Paul Feeney, CEO of Quilter plc, commented:
"I am pleased that we have seen an 11% increase in AuMA from continuing operations over the course of 2019. As indicated earlier this year, we expected this year to be challenging for net client cash flows, reflecting an uncertain political and economic backdrop coupled with some Quilter-specific factors, in particular, the loss of a certain cohort of investment managers in Quilter Cheviot last year. Positively, gross flows within Quilter Cheviot in the third quarter were up year-on-year partially reflecting the contribution from recent investment manager hires. Notwithstanding the challenging backdrop, we continue to be encouraged by resilient gross flows and high levels of customer asset retention across our businesses which were broadly stable on 2018, excluding the impact of the Quilter Cheviot outflows. While near-term headwinds remain, this demonstrates that our clients and their advisers value Quilter's integrated advice-led model, and this continues to provide support to our revenue and operating margin outlook.
"The integration of Lighthouse plc and Charles Derby Group are both progressing well and are expected to contribute more meaningfully to flows from next year. The Platform Transformation Programme continues to progress well, with the first migration planned for early 2020, in line with previous announcements. Together, this will help secure our goal of making Quilter the best place to go for trusted financial advice in the UK."
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Quilter plc data tables for the three months ended 30 September 2019 (£bn) |
||||||
|
Q3 gross flows, net flows & AuMA (£bn) |
AuMA 2019 |
Gross |
Gross outflows |
Net flows |
Market and other movements |
AuMA |
|
|
|
|
|
|
|
|
|
Quilter Investors |
20.0 |
0.9 |
(0.9) |
- |
0.3 |
20.3 |
|
Quilter Cheviot |
24.1 |
0.7 |
(1.1) |
(0.4) |
0.3 |
24.0 |
|
Quilter Financial Planning |
1.0 |
- |
- |
- |
- |
1.0 |
|
Advice & Wealth Management |
45.1 |
1.6 |
(2.0) |
(0.4) |
0.6 |
45.3 |
|
|
|
|
|
|
|
|
|
Quilter Wealth Solutions |
55.3 |
1.4 |
(1.3) |
0.1 |
0.8 |
56.2 |
|
Quilter International |
20.1 |
0.4 |
(0.3) |
0.1 |
0.2 |
20.4 |
|
Quilter Life Assurance |
12.1 |
0.2 |
(1.3) |
(1.1) |
0.3 |
11.3 |
|
Wealth Platforms |
87.5 |
2.0 |
(2.9) |
(0.9) |
1.3 |
87.9 |
|
|
|
|
|
|
|
|
|
Elimination of intra-group assets |
(14.2) |
(0.6) |
0.5 |
(0.1) |
(0.2) |
(14.5) |
|
|
|
|
|
|
|
|
|
Quilter plc |
118.4 |
3.0 |
(4.4) |
(1.4) |
1.7 |
118.7 |
|
|
|
|
|
|
|
|
|
|
AuMA 2018 |
Gross |
Gross outflows |
Net flows |
Market and other movements |
AuMA |
|
|
|
|
|
|
|
|
|
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 Assurance |
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 |
|
Quilter plc data tables for the nine months ended 30 September 2019 (£bn) |
||||||
|
Year-to-date gross flows, net flows & AuMA (£bn) |
AuMA |
Gross |
Gross outflows |
Net flows |
Market and other movements |
AuMA |
|
|
|
|
|
|
|
|
|
Quilter Investors |
17.8 |
2.9 |
(2.5) |
0.4 |
2.1 |
20.3 |
|
Quilter Cheviot |
22.4 |
1.9 |
(2.7) |
(0.8) |
2.4 |
24.0 |
|
Quilter Financial Planning |
1.0 |
- |
- |
- |
- |
1.0 |
|
Advice & Wealth Management |
41.2 |
4.8 |
(5.2) |
(0.4) |
4.5 |
45.3 |
|
|
|
|
|
|
|
|
|
Quilter Wealth Solutions |
49.9 |
4.4 |
(3.8) |
0.6 |
5.7 |
56.2 |
|
Quilter International |
18.4 |
1.2 |
(1.0) |
0.2 |
1.8 |
20.4 |
|
Quilter Life Assurance |
12.4 |
0.4 |
(2.7) |
(2.3) |
1.2 |
11.3 |
|
Wealth Platforms |
80.7 |
6.0 |
(7.5) |
(1.5) |
8.7 |
87.9 |
|
|
|
|
|
|
|
|
|
Elimination of intra-group assets |
(12.6) |
(1.8) |
1.4 |
(0.4) |
(1.5) |
(14.5) |
|
|
|
|
|
|
|
|
|
Quilter plc |
109.3 |
9.0 |
(11.3) |
(2.3) |
11.7 |
118.7 |
|
|
|
|
|
|
|
|
|
|
AuMA |
Gross |
Gross outflows |
Net flows |
Market and other movements |
AuMA |
|
|
|
|
|
|
|
|
|
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 Assurance |
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 |
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 £118.7 billion in customer investments (as at 30 September 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 and Quilter Private Client 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; Old Mutual International, including AAM Advisory in Singapore; and the Quilter Life Assurance business.
|
The Quilter plc businesses are being re-branded to Quilter over a period of approximately two years. 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 |
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Heritage |
Quilter Life Assurance |
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.
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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