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QUILTER PLC
Incorporated under the Companies Act 1985 with registered number 06404270 and re-registered as a public limited company under the Companies
Act 2006)
ISIN CODE: GB00BNHSJN34
JSE SHARE CODE: QLT
Quilter plc (the "Company")
24 January 2024
Quilter plc
Fourth Quarter 2023 Trading Statement
Q4 Reported and core net flows rebound to deliver net positive inflow; fourth quarter IFA Platform gross flows up 44% year-on-year
Quilter plc highlights:
• Assets under Management and Administration (“AuMA”) of £106.7 billion at 31 December 2023 increased by 5% on the end-September position
(£101.4 billion). This reflects supportive markets into year-end combined with a contribution from net flows during the quarter.
• Fourth quarter core business net inflows of £175 million contrasted with net inflows of £242 million in the corresponding period of 2022 and were
a significant improvement on the £1 million achieved in the third quarter of 2023.
o The Quilter channel delivered another strong quarter, resulting in:
Full year 2023 net inflows as a percentage of opening AuMA were 15% in the High Net Worth segment and 10% in the Affluent segment.
Full year 2023 gross inflows increased by 16% year-on-year in the High Net Worth segment and 12% in the Affluent segment.
Fourth quarter gross inflows in the Affluent segment were 8% ahead of the average level in the first three quarters of 2023.
Fourth quarter gross inflows in the High Net Worth segment were consistent with the prior quarter levels.
o The strength of our Platform proposition, enhanced by strategic actions taken, continues to be demonstrated by increased levels of new
business despite challenging market conditions:
Full year 2023 Quilter channel gross and net flows onto the Platform increased by 15% and 14%, respectively.
IFA channel gross inflows onto the Platform in the fourth quarter increased by 44% on the comparable period to £1.4 billion (Q4 2022:
£1.0 billion) and by 7% on a full year basis. This improved level of new business flow meant the IFA channel returned to net inflow
during the quarter, despite headwinds from the impact of industry consolidation.
o High Net Worth clients’ continued portfolio repositioning given the current macro environment led to an outflow in the IFA/directly sourced
channel, with this partially offset by net inflows in the Quilter channel.
• Fourth quarter non-core net outflows of £119 million were consistent with third quarter levels.
• Persistency levels in the quarter remained broadly stable at 90% in the High Net Worth segment and 88% in the Affluent segment.
• Productivity: Quilter channel annualised gross sales per Quilter Adviser were £2.9 million in the fourth quarter, up 21% on prior year period.
Quilter plc: Three months ended 31 December 2023
Quilter plc, unaudited Q4 2023 Q4 2022
AuMA: Reported (£bn) 106.7 99.6
Of which are administered on the UK Platform 73.8 67.0
Of which are administered on external platforms 7.0 7.9
Of which High Net Worth 27.0 25.5
Gross flow: Reported (£m) 2,979 2,236
Net flow: Core (£m) 175 242
Net flow: Reported (including non-core) (£m) 56 159
Productivity: Quilter channel gross sales per Quilter Adviser (£m, annualised) 2.9 2.4
Quilter plc: Twelve months ended 31 December 2023
Quilter plc, unaudited 2023 2022
AuMA: Reported (£bn) 106.7 99.6
Gross flow: Reported (£m) 11,174 10,529
Net flow: Core (£m) 832 2,122
Net flow: Reported (including non-core) (£m) 137 1,787
Productivity: Quilter channel gross sales per Quilter Adviser (£m) 2.8 2.3
Steven Levin, Chief Executive Officer of Quilter plc, commented:
“In what has been a tough year across the industry, we finished 2023 on a positive note with improved fourth quarter performance relative to the third.
The Quilter channel continues to drive strong net flows in both our Affluent and High Net Worth segments. Our focus on reshaping our Advice business
is demonstrating clear results, with Quilter channel gross sales per Quilter Adviser increasing 21% on the prior year comparative period.
“Our actions to enhance the proposition of our Platform continue to bear fruit. We saw 44% year-on-year growth in fourth quarter gross new business
from IFAs onto our Platform in our Affluent segment, resulting in us moving back into a position of net inflows in this channel during the final quarter.
“Across the industry, 2023 saw a lot of focus on strategic positioning of businesses within a consumer duty context; we remain confident that our open
and unbundled business model leaves us well positioned for the current environment. We look forward to updating the market on the progress we are
making on our strategic goals of building distribution, enhancing propositions, and improving efficiency at our Full Year Results on 6 March 2024.“
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) 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 UK-centric wealth management business, helping to create prosperity for the generations of today and tomorrow.
Quilter oversees £106.7 billion in customer investments as at 31 December 2023.
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 conflict in Ukraine, 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 31 December 2023 (£bn) – unaudited
Of which
managed by
AuMA AuMA Quilter
as at Gross Net as at 31 AuM as at
30 September flows flows December 31 December
2023 Q4 gross flows, net flows & AuMA (£bn), unaudited 2023 (£m) (£m) 2023 2023
AFFLUENT SEGMENT
Quilter channel1 16.1 955 331 17.2 13.3
IFA channel on Quilter Investment Platform 55.6 1,436 6 58.7 10.6
Funds via third-party platform 1.6 80 (50) 1.6 1.6
Total Affluent segment core business 73.3 2,471 287 77.5 25.5
HIGH NET WORTH SEGMENT
Quilter channel 2.7 123 83 2.9 2.9
IFA channel incl. Direct 23.0 434 (159) 24.1 24.1
Total High Net Worth segment 25.7 557 (76) 27.0 27.0
Inter-Segment Dual Assets 2
(0.9) (67) (36) (1.1) (0.3)
Quilter plc core business 98.1 2,961 175 103.4 52.2
Non-core 3.3 18 (119) 3.3 2.1
Quilter plc reported 101.4 2,979 56 106.7 54.3
Affluent AuMA breakdown (incl. Non-core):
Affluent administered only 50.7 1,291 47 53.2
Affluent managed and administered 18.9 927 450 20.6
Affluent external platform 7.0 271 (329) 7.0
1
For modeling purposes: Quilter channel fourth quarter Platform discrete gross flows and net flows were £781 million and £526 million, respectively, with closing AuMA
of £13.9 billion.
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.
Quilter plc data tables for the full year ended 31 December 2023 (£bn) – unaudited
Of which
managed by
AuMA AuMA Quilter
as at Gross Net as at 31 AuM as at
31 December flows flows December 31 December
2023 gross flows, net flows & AuMA (£bn), unaudited 2022 (£m) (£m) 2023 2023
AFFLUENT SEGMENT
Quilter channel1 15.4 3,608 1,608 17.2 13.3
IFA channel on Quilter Investment Platform 54.1 5,251 (164) 58.7 10.6
Funds via third-party platform 2.0 301 (316) 1.6 1.6
Total Affluent segment core business 71.5 9,160 1,128 77.5 25.5
HIGH NET WORTH SEGMENT
Quilter channel 2.4 513 369 2.9 2.9
IFA channel incl. Direct 23.1 1,681 (507) 24.1 24.1
Total High Net Worth segment 25.5 2,194 (138) 27.0 27.0
Inter-Segment Dual Assets 2
(0.8) (258) (158) (1.1) (0.3)
Quilter plc core business 96.2 11,096 832 103.4 52.2
Non-core 3.4 78 (695) 3.3 2.1
Quilter plc reported 99.6 11,174 137 106.7 54.3
Affluent AuMA breakdown (incl. Non-core):
Affluent administered only 50.0 4,823 270 53.2
Affluent managed and administered 17.0 3,369 1,520 20.6
Affluent external platform 7.9 1,046 (1,357) 7.0
1
For modeling purposes: Quilter channel 2023 Platform discrete gross flows and net flows were £2,934 million and £2,074 million, respectively, with closing AuMA of
£13.9 billion.
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.
Quilter plc data tables for the three months ended 31 December 2022 (£bn) – unaudited
Of which
managed by
AuMA AuMA Quilter
as at Gross Net as at 31 AuM as at
30 September flows flows December 31 December
2022 Q4 gross flows, net flows & AuMA (£bn), unaudited 2022 (£m) (£m) 2022 2022
AFFLUENT SEGMENT
Quilter channel1 14.8 734 375 15.4 11.5
IFA channel on Quilter Investment Platform 52.4 1,000 (103) 54.1 9.2
Funds via third-party platform 2.1 53 (152) 2.0 2.0
Total Affluent segment core business 69.3 1,787 120 71.5 22.7
HIGH NET WORTH SEGMENT
Quilter channel 2.3 182 138 2.4 2.4
IFA channel incl. Direct 22.6 307 20 23.1 23.1
Total High Net Worth segment 24.9 489 158 25.5 25.5
Inter-Segment Dual Assets 2
(0.7) (54) (36) (0.8) (0.2)
Quilter plc core business 93.5 2,222 242 96.2 48.0
Non-core 3.4 14 (83) 3.4 2.2
Quilter plc reported 96.9 2,236 159 99.6 50.2
Affluent AuMA breakdown (incl. Non-core):
Affluent administered only 48.6 997 (48) 50.0
Affluent managed and administered 16.0 598 360 17.0
Affluent external platform 8.1 206 (275) 7.9
1
For modeling purposes: Quilter channel fourth quarter Platform discrete gross flows and net flows were £594 million and £439 million, respectively, with closing AuMA
of £11.7 billion.
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.
Quilter plc data tables for the full year ended 31 December 2022 (£bn) – unaudited
Of which
managed by
AuMA AuMA Quilter
as at Gross Net as at 31 AuM as at
31 December flows flows December 31 December
2022 gross flows, net flows & AuMA (£bn), unaudited 2021 (£m) (£m) 2022 2022
AFFLUENT SEGMENT
Quilter channel1 16.6 3,218 1,636 15.4 11.5
IFA channel on Quilter Investment Platform 60.0 4,926 445 54.1 9.2
Funds via third-party platform 2.5 242 (621) 2.0 2.0
Total Affluent segment core business 79.1 8,386 1,460 71.5 22.7
HIGH NET WORTH SEGMENT
Quilter channel 2.5 443 353 2.4 2.4
IFA channel incl. Direct 26.2 1,827 539 23.1 23.1
Total High Net Worth segment 28.7 2,270 892 25.5 25.5
Inter-Segment Dual Assets 2
(0.2) (276) (230) (0.8) (0.2)
Quilter plc core business 107.6 10,380 2,122 96.2 48.0
Non-core 4.2 149 (335) 3.4 2.2
Quilter plc reported 111.8 10,529 1,787 99.6 50.2
Affluent AuMA breakdown (incl. Non-core):
Affluent administered only 55.9 4,894 1,027 50.0
Affluent managed and administered 17.3 2,621 1,166 17.0
Affluent external platform 10.1 1,020 (1,068) 7.9
1
For modeling purposes: Quilter channel 2022 Platform discrete gross flows and net flows were £2,554 million and £1,823 million, respectively, with closing AuMA of
£11.7 billion.
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.
Sponsor:
J.P. Morgan Equities South Africa Proprietary Limited
