Quilter plc reports resilient Q4 flow performance, despite an expected seasonal slowdown relative to Q3

by | Jan 25, 2023

Quilter plc highlights:

·        Assets under Management and Administration (“AuMA”) of £99.6 billion at the end of December 2022, an increase of 3% from 30 September 2022. This reflected a modest pick-up in equity markets and slightly lower bond yields in the final quarter. Average AuMA for the fourth quarter of £98.8 billion (Q4 2021: £110.0 billion) was broadly in line with the third quarter average of £100.1 billion (Q3 2021: £106.9 billion) but remained below the first half average of £105.3 billion (H1 2021: £101.7 billion).

·        Net inflows of £159 million for Q4 (Q4 2021: £950 million) versus £236 million in Q3 2022 (Q3 2021: £1,018 million), reflecting the normal seasonality in the business relative to Q3 2022. This represented 1% of opening AuMA annualised (2021: 4%).

·        Solid performance from the Quilter channel with quarterly gross platform flows of £594 million (Q4 2021: £691 million), with adviser productivity stable at £2.4 million (annualised). Total Quilter channel quarterly net inflows of £513 million (Q4 2021: £584 million) with the decrease reflecting lower levels of new business.

·        Resilient gross flows from the IFA channel, with net flows impacted by adviser consolidation across the market. We remain focused on attracting new firms to our UK platform and continue to make good progress in that regard.

·        Pleasing performance from High Net Worth segment, with moderately lower gross flows and stable retention leading to net flows for the quarter of £158 million (Q4 2021: £282 million).

·        Refinance of existing £200 million subordinated bond (which will be called in February 2023) completed in early January through an issue of £200 million of 8⅝% Fixed Rate Reset Subordinated Notes due April 2033.

 

Quilter plc: Three months ended 31 December 2022

 

 

Quilter plc, unaudited

Q4 2022

Q4 2021

AuMA (£bn)

                           99.6

                           111.8

Of which Administered on UK Platform

67.0

73.2

Of which High Net Worth

25.5

28.7

Gross flow (£m)

2,236

3,253

Net inflow (£m)

159

950

Productivity: Quilter channel gross sales per Quilter Adviser (£m, annualised)

2.4

2.4

 

 

 

Quilter plc: Twelve months ended 31 December 2022

 

 

Quilter plc, unaudited

2022

2021

AuMA (£bn)

99.6

111.8

Gross flow (£m)

10,529

13,175

Net inflow (£m)

1,787

3,967

Productivity: Quilter channel gross sales per Quilter Adviser (£m)

2.3

2.3

 

 

Steven Levin, Chief Executive Officer, Quilter, said:

“Although net flows for 2022 were below the level we want to achieve, we finished the year on a solid note despite the usual seasonal slowdown towards the end of the quarter. I was particularly pleased with the performance from our High Net Worth segment which has continued to deliver a robust performance, with good flows from the Quilter channel offsetting a slowdown in IFA flows.

“More broadly, the Quilter channel continued to deliver consistent flows to our platform and has maintained steady productivity throughout the year. The level of gross new IFA flows onto our platform remains good relative to peers given the market context and overall customer drawdowns remain in-line with historical trends. Net flows have been impacted by heightened adviser consolidation across the market. We continued to grow the base of IFAs using our market-leading platform in the quarter and expect incremental flows from this source to build over time. Finally, I look forward to updating the market on our financial results for 2022 on 8 March 2023.”

Quilter plc data tables for the three months ended 31 December 2022 (£bn) – unaudited

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 channel

11.0

594

439

11.7

7.8

IFA channel

52.4

1,000

(103)

54.1

9.2

Non-core business

1.2

1

(24)

1.2

Sub-total (Quilter Platform)

64.6

1,595

312

67.0

17.0

Via other platforms

 

 

 

 

 

Quilter channel1

3.8

140

  (64)

3.7

3.7

IFA channel

2.1

53

            (152)

2.0

2.0

Non-core businesses

2.2

13

               (59)

2.2

2.2

Sub-total

 8.1

206

(275) 

7.9

7.9

Total Affluent Segment

72.7

1,801

37

74.9

24.9

 

 

 

 

 

 

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 assets1

(0.7)

(54)

(36)

(0.8)

(0.2)

Quilter plc

96.9

2,236

159

99.6

50.2

 

 

 

 

 

 

AuMA breakdown:

 

 

 

 

 

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

 

 

 

 

 

 

 

Quilter channel

17.1

916

513

17.8

 

IFA channel

76.4

1,306

(271)

78.4

 

Non-core business

3.4

14

(83)

3.4

 

1Inter-segment dual assets reflect funds sold by Quilter Cheviot and managed by Quilter Investors and the Quilter Cheviot bespoke MPS solution 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 YTD 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 channel

11.7

2,554

1,823

11.7

7.8

IFA channel

60.0

4,926

445

54.1

9.2

Non-core business

1.5

35

(75)

1.2

Sub-total (Quilter Platform)

73.2

7,515

2,193

67.0

17.0

Via other platforms

 

 

 

 

 

Quilter channel1

4.9

664

  (187)

3.7

3.7

IFA channel

2.5

242

            (621)

2.0

2.0

Non-core businesses

2.7

114

            (260)

2.2

2.2

Sub-total

 10.1

1,020

(1,068)

7.9

7.9

Total Affluent Segment

83.3

8,535

1,125

74.9

24.9

 

 

 

 

 

 

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 assets1

(0.2)

(276)

(230)

(0.8)

(0.2)

Quilter plc

111.8

10,529

1,787

99.6

50.2

 

 

 

 

 

 

AuMA breakdown:

 

 

 

 

 

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

 

 

 

 

 

 

 

Quilter channel

19.1

3,661

1,989

17.8

 

IFA channel

88.5

6,719

133

78.4

 

Non-core business

4.2

149

(335)

3.4

 

1Inter-segment dual assets reflect funds sold by Quilter Cheviot and managed by Quilter Investors and the Quilter Cheviot bespoke MPS solution available to advisers on the Quilter Investment Platform. This is excluded from total AuMA to ensure no double count takes place.

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