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Quilter plc First Quarter 2021 Trading Statement

21 April 2021

Quilter plc reports significantly improved net flows, led by Quilter Investment Platform

Highlights: Client assets      

  • Assets under Management and Administration (“AuMA”) of £119.9 billion at the end of March 2021 (+26% from end March 2020 and +2% from 31 December 2020), with growth supported by improved net flows, positive investment performance and markets:  
    • First quarter gross sales of £3.8 billion (2020: £3.3 billion), an increase of 15% on the comparable period.
    • Net inflows of £1.2 billion (2020: £0.5 billion), an increase of 240% on the first quarter of 2020.
    • Average 2021 AuMA of £118.2 billion (2020: £105.2 billion), an increase of 12%.
    • Integrated flows of £1.0 billion (2020: £0.8 billion), an increase of 25% on prior year.
  • Quilter Investment Platform delivered a 29% increase in gross sales for the quarter of £2.2 billion (2020: £1.7 billion) which, with stable persistency, led to a 100% increase in net inflows to £1.0 billion (2020: £0.5 billion).
  • Improved flows from Quilter Cheviot, with net inflows of £0.2 billion (2020: £0.1 billion) reflecting better retention and stable gross sales.
  • Gross and net inflows were stable at Quilter Investors, and improved investment performance in the 12 months to end March 2021 are expected to drive an improvement in flows over the course of the year.
  • Consistent overall performance from Quilter International.

Highlights: Other

  • Sale of Quilter International for approximately £483 million announced on 1 April 2021. Publication of Class 1 Circular anticipated in May 2021, with General Meeting to be scheduled in June 2021. Continue to expect Completion around year-end 2021.
  • Share buyback programme resumed on 7 April 2021. As at 20 April 2021, 140.1 million shares had been acquired for cancellation under Quilter’s capital return programme, at a cost of £187.2 million representing an average price of 133.7 pence per share.

 

Quilter plc: Three months ended 31 March 2021

 

 

 

Quilter plc (£bn), unaudited

Q1 2021

Q1 2020

% Change

AuMA

119.9

95.3

+26%

Gross sales

3.8

3.3

+15%

NCCF

1.2

0.5

+240%

  as a percentage of opening AuMA

4%

2%

-

Total integrated net flows

1.0

0.8

+25%

  of which Quilter Financial Planning generated

1.0

0.7

+43%

Defined Benefit to Defined Contribution transfers

0.2

0.3

-33%

 

 Paul Feeney, CEO of Quilter plc, commented:

“I am delighted with the significant improvement in both our gross and net flows in the first quarter of 2021, with the UK business, excluding Quilter International, delivering annualised NCCF of 5% of opening AuMA. This has been led by our new Quilter Investment Platform which achieved record gross flows in March 2021, exceeding monthly sales of £1 billion for the first time. I have often described our platform as the beating heart of our business and the opportunity it provides as being transformative for Quilter. It is therefore particularly pleasing to see a meaningful pick-up in the rate of platform sales.

I am also pleased to see the improvement in net flows in Quilter Cheviot supported by improved retention, as well as broad stability in flows at Quilter Investors and Quilter International. With Quilter Investors having delivered a much improved one-year investment performance in the period to end March 2021, we are anticipating this, combined with well-established long-term performance, will drive an increase in gross flows in the coming months.

Finally, we have been pleased with shareholder feedback and market reaction to the proposed sale of Quilter International. We expect the formal Class 1 Circular to be mailed to shareholders in the coming weeks and we look forward to receiving shareholder approval for the sale at a General Meeting of the Company to be scheduled in June.”

 

Quilter plc data tables for the three months ended 31 March (£bn) - unaudited

Q1 2021 gross flows, net flows & AuMA (£bn)

AuMA
as at
31 December 2020

Gross  
sales

Gross outflows

Net flows

Market and other movements

AuMA
as at
31 March 2021

Quilter Investors

23.2

1.5

(1.3)

0.2

0.3

23.7

Quilter Cheviot1

25.3

0.7

(0.5)

0.2

(0.1)

25.4

Advice & Wealth Management

48.5

2.2

(1.8)

0.4

0.2

49.1

Quilter Investment Platform

62.5

2.2

(1.2)

1.0

0.8

64.3

Quilter International

21.8

0.5

(0.4)

0.1

0.1

22.0

Wealth Platforms

84.3

2.7

(1.6)

1.1

0.9

86.3

Elimination of intra-group assets

(15.0)

(1.1)

0.8

(0.3)

(0.2)

(15.5)

Quilter plc

117.8

3.8

(2.6)

1.2

0.9

119.9

Q1 2020 gross flows, net flows & AuMA (£bn)

AuMA
as at
31 December 2019

Gross
sales

Gross outflows

Net flows

Market and other movements

AuMA
as at
31 March 2020

Quilter Investors

21.6

1.5

(1.3)

0.2

(3.7)

18.1

Quilter Cheviot

24.2

0.7

(0.6)

0.1

(3.6)

20.7

Advice & Wealth Management

45.8

2.2

(1.9)

0.3

(7.3)

38.8

Quilter Investment Platform

57.2

1.7

(1.2)

0.5

(8.2)

49.5

Quilter International

20.5

0.4

(0.3)

0.1

(2.2)

18.4

Wealth Platforms

77.7

2.1

(1.5)

0.6

(10.4)

67.9

Elimination of intra-group assets

(13.1)

(1.0)

0.6

(0.4)

2.1

(11.4)

Quilter plc

110.4

3.3

(2.8)

0.5

(15.6)

95.3

1Note: Positive contribution from markets of £0.3 billion in Quilter Cheviot has been offset by the re-classification of a number of offshore portfolios from a legacy advisory service to an execution-only service.

 

Enquiries

Investor Relations:

John-Paul Crutchley                                   +44 (0)7741 385 251

Keilah Codd                                                  +44 (0)7776 649 681

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

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 £119.9 billion in customer investments (as at 31 March 2021).

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 Private Client Advisers, Quilter Financial Planning and Quilter Financial Advisers), the discretionary fund management business (Quilter Cheviot) and the Multi-asset investment solutions business (Quilter Investors). Wealth Platforms includes the Old Mutual Wealth UK Platform and Quilter International, including AAM Advisory in Singapore.

Since its IPO in June 2018, the Group’s businesses have progressively re-branded to Quilter. The UK Platform is the final business to rebrand and this is expected to occur by mid-2021. The descriptor for the re-branded businesses are:

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 Investment Platform

International

Quilter International

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 press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Quilter plc.  This communication is issued by Quilter plc.  Registered office: Senator House, 85 Queen Victoria Street, London, EC4V 4AB, United Kingdom. Registered number: 6404270.  Registered in England.