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Quilter plc Fourth Quarter 2020 Trading Statement

26 January 2021

Quilter plc (the “Group”) reports strong Q4 net flows and expects to complete the final Platform migration by the end of February 2021

Highlights: Flows  

  • Assets under Management and Administration (“AuMA”) of £117.8 billion at the end of December 2020 (+7% from 31 December 2019), with growth supported by improved net flows and positive market movement:
    • Fourth quarter gross sales of £2.8 billion (2019: £3.5 billion) and net inflows of £0.4 billion (2019: £0.5 billion).
    • 2020 total gross sales of £10.9 billion (2019: £12.3 billion) and net inflows of £1.6 billion (2019: £0.3 billion).
    • Average 2020 AuMA of £107.9 billion (2019: £105.7 billion), an increase of 2% in volatile equity markets.
  • Strong flow performance from the Quilter Investment Platform. Modestly lower gross sales of £5.7 billion in 2020 (2019: £6.0 billion) offset by improved retention, driving higher net inflows of £1.5 billion (2019: £0.9 billion) notwithstanding completion of two significant adviser migrations over the year.
  • Resilient net inflows in Quilter Investors, Quilter Cheviot and Quilter International in a volatile year. Integrated net flows of £2.3 billion.

Highlights: Strategic Progress

  • Following our successful second client asset migration at the end of November, by end-2020 c.80% (approx.£50 billion) of UK Investment Platform assets had been migrated onto the new Platform technology, despite UK lockdowns. Initial feedback from advisers has been positive and the Group has continued to focus on ensuring customers and advisers are fully supported during this post-migration phase.
  • The final migration of assets onto the new UK platform continues to be scheduled to complete over the weekend of 27/28 February 2021, with notice given to advisers and customers involved in the final migration. Working practices and migration plans fully reflect updated Covid-19 guidance from the four UK devolved Administrations, and the team continue to monitor staff wellness closely as this remains a critical consideration for the successful execution of the migration.
  • As at 31 December 2020, 118.3 million shares had been acquired for cancellation under Quilter’s capital return programme, at a cost of £153.0 million representing an average price of 129.3 pence per share. Fully diluted period end and average shares for 2020 were 1,729 million and 1,797 million respectively.

Quilter plc: Three months ended 31 December 2020

 

 

Quilter plc (£bn), unaudited

Q4 2020

Q4 2019

AuMA

117.8

110.4

Gross sales

2.8

3.5

NCCF

0.4

0.5

Total integrated net flows

0.5

0.8

  of which Quilter Financial Planning generated

0.6

0.6

Defined Benefit to Defined Contribution transfers

0.2

0.2

 

Quilter plc: Twelve months ended 31 December 2020

 

 

Quilter plc (£bn), unaudited

2020

2019

AuMA

117.8

110.4

Gross sales

10.9

12.3

NCCF

1.6

0.3

Total integrated net flows

2.3

2.6

  of which Quilter Financial Planning generated

2.3

2.6

Defined Benefit to Defined Contribution transfers

0.9

0.8

Paul Feeney, CEO of Quilter plc, commented:

2020 was a year of unprecedented challenges in so many respects and one of extraordinary market volatility. It is in challenging times like these that our advice-based model comes to the fore and this is reflected through the higher levels of client retention experienced in 2020, at 92% versus 88% in 2019. We finished the year strongly with improved year-on-year net inflows, AuMA ending around 7% higher over the year, and modestly higher average AuMA over 2019 despite market volatility.

I am particularly pleased by the consistent performance of our UK Platform throughout the year and with it delivering a good final quarter despite the major migration completing at the end of November. This is testament to the quality of our franchise coupled by the extraordinary planning and execution efforts from our teams to deliver a successful migration in a lockdown environment. Our learnings from this process underpin our confidence to continue with the final migration at the end of February. We continue to monitor colleague wellness closely to ensure we remain appropriately staffed for the migration event itself and the period following in order that advisers and customers are supported to the level which both they and Quilter expect. Our new UK Platform will be transformational for Quilter. I am delighted that the finishing line is now in sight and am excited about the opportunity ahead of us to drive further business growth.

Quilter plc data tables for the three months ended 31 December 2020 (£bn)

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

AuMA
as at
30 September 2020

Gross  
sales

Gross outflows

Net flows

Market and other movements

AuMA
as at
31 December 2020

Quilter Investors

21.3

1.2

(1.2)

-

1.9

23.2

Quilter Cheviot

23.6

0.4

(0.3)

0.1

1.6

25.3

Advice & Wealth Management

44.9

1.6

(1.5)

0.1

3.5

48.5

Quilter Investment Platform

57.7

1.5

(1.1)

0.4

4.4

62.5

Quilter International

20.6

0.5

(0.4)

0.1

1.1

21.8

Wealth Platforms

78.3

2.0

(1.5)

0.5

5.5

84.3

Elimination of intra-group assets

(13.7)

(0.8)

0.6

(0.2)

(1.1)

(15.0)

Quilter plc

109.5

2.8

(2.4)

0.4

7.9

117.8

 

AuMA
as at
30 September 2019

Gross
sales

Gross outflows

Net flows

Market and other movements

AuMA
as at
31 December 2019

Quilter Investors1

21.0

2.0

(1.9)

0.1

0.5

21.6

Quilter Cheviot

23.8

0.7

(0.7)

-

0.4

24.2

Advice & Wealth Management

44.8

2.7

(2.6)

0.1

0.9

45.8

Quilter Investment Platform

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

108.2

3.5

(3.0)

0.5

1.7

110.4

1Quilter Investors’ AuMA restated for comparative purposes by £0.8 billion for 30 September and 31 December 2019 respectively to include Quilter Financial Planning assets transferred as at 1 January 2020.

 

Quilter plc data tables for the Twelve months ended 31 December 2020 (£bn)

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 December 2020

Quilter Investors

21.6

5.0

(4.7)

0.3

1.3

23.2

Quilter Cheviot

24.2

2.1

(1.8)

0.3

0.8

25.3

Advice & Wealth Management

45.8

7.1

(6.5)

0.6

2.1

48.5

Quilter Investment Platform

57.2

5.7

(4.2)

1.5

3.8

62.5

Quilter International

20.5

1.6

(1.3)

0.3

1.0

21.8

Wealth Platforms

77.7

7.3

(5.5)

1.8

4.8

84.3

Elimination of intra-group assets

(13.1)

(3.5)

2.7

(0.8)

(1.1)

(15.0)

Quilter plc

110.4

10.9

(9.3)

1.6

5.8

117.8

 

AuMA
as at
31 December

2018

Gross
sales

Gross outflows

Net flows

Market and other movements

AuMA
as at
31 December 2019

Quilter Investors1

18.5

4.9

(4.4)

0.5

2.6

21.6

Quilter Cheviot

22.2

2.6

(3.4)

(0.8)

2.8

24.2

Advice & Wealth Management

40.7

7.5

(7.8)

(0.3)

5.4

45.8

Quilter Investment Platform

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

77.7

Elimination of intra-group assets

(10.7)

(3.2)

2.4

(0.8)

(1.6)

(13.1)

Quilter plc

97.7

12.3

(12.0)

0.3

12.4

110.4

1Quilter Investors’ AuMA restated for comparative purposes by £0.8 billion for 31 December 2018 and 31 December 2019 respectively to include Quilter Financial Planning assets transferred as at 1 January 2020.

 

 

Financial Calendar

Date

Results for the year ended 31 December 2020

10 March 20211

1Assuming no significant disruption from the current Covid-19 lockdown.

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 £117.8 billion in customer investments (as at 31 December 2020).

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.

Quilter plc includes: 

  • Quilter Financial Planning

  • Quilter Private Client Advisers

  • Quilter Financial Advisers

  • Quilter Financial Adviser School

  • Quilter Cheviot

  • Quilter Investors

  • Old Mutual Wealth (becoming Quilter Investment Platform)

  • 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.