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Q4 Reported and core net flows rebound to deliver net positive inflow; fourth quarter IFA Platform gross flows up 44% year-on-year

Date: 24 January 2024

24 January 2024

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.
  • 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.
  • 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.
  • 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 (£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 (£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.“

Quilter plc data tables for the three months ended 31 December 2023 (£bn) – unaudited

2023 Q4 gross flows, net flows & AuMA (£bn), unaudited

AuMA

as at
30 September

2023

Gross  
flows
(£m)

Net

flows

(£m)

AuMA

as at 31
 December

2023

Of which managed by Quilter

AuM as at
31 December

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 Assets2

(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

2023 gross flows, net flows & AuMA (£bn), unaudited

AuMA

as at
31 December

2022

Gross  
flows
(£m)

Net

flows

(£m)

AuMA

as at 31
 December

2023

Of which managed by Quilter

AuM as at
31 December

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 Assets2

(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

2022 Q4 gross flows, net flows & AuMA (£bn), unaudited

AuMA

as at
30 September

2022

Gross  
flows
(£m)

Net

flows
(£m)

AuMA

as at 31 December

2022

Of which managed by Quilter

AuM as at
31 December

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 Assets2

(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

2022 gross flows, net flows & AuMA (£bn), unaudited

AuMA

as at
31 December

2021

Gross  
flows
(£m)

Net

flows

(£m)

AuMA

as at 31 December

2022

Of which managed by Quilter

AuM as at
31 December

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 Assets2

(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.

 

Tim Skelton-Smith

Tim Skelton-Smith

Head of External Communications