Wrap Text
Q3 Trading update
QUILTER PLC
(previously, Old Mutual Wealth Management Limited)
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: GB00BDCXV269
JSE SHARE CODE: QLT
Quilter plc (the "Company")
24 October 2018
QUILTER PLC REPORTS SOLID NCCF FOR Q3
Highlights
- Third quarter Net Client Cash Flow (NCCF) of £1.1 billion, excluding Quilter Life Assurance, was marginally ahead of the second quarter
but below the high level achieved in Q3 2017, when market activity was significantly more buoyant.
- Year to date NCCF of £4.1 billion, represents 5% of opening Assets under Management and Administration (AuMA) on an annualised basis.
- Steady growth in AuMA to £118.1 billion despite mixed global market performance (up 3% year to date and up 1.4% from 30 June 2018
despite a decline of 1.7% in the FTSE 100 Index during the third quarter).
- £0.9 billion of integrated flows delivered during the quarter (of which £0.8 billion was from Quilter Financial Planning and Private Client
Advisers). Total integrated flows of £3.0 billion year to date (+7%) further demonstrating the strength of our advice based business model.
Quilter plc highlights for the nine months ended 30 September 2018
Quilter plc (£bn) Q3 2018 YTD Q3 2017 YTD
NCCF 2.7 4.5
NCCF (excluding Quilter Life Assurance) 4.1 5.3
NCCF/opening AuMA (excluding Quilter Life Assurance)(1) 5% 8%
Gross Sales 11.5 12.7
Total integrated net flows (excluding Quilter Life Assurance) 3.7 3.8
Of which Quilter Financial Planning & Private Client Advisers generated 3.0 2.8
30 September 31 December
2018 2017
Assets under Management/Administration (AuMA) 118.1 114.4
(1)NCCF (annualised) as a % of opening AuMA (excluding Quilter Life Assurance)
Quilter plc highlights for the three months ended 30 September 2018
Quilter plc (£bn) Q3 2018 Q3 2017
NCCF 0.5 1.3
NCCF (excluding Quilter Life Assurance) 1.1 1.9
Gross Sales 3.4 4.1
Total integrated net flows (excluding Quilter Life Assurance) 0.9 1.4
Of which Quilter Financial Planning & Private Client Advisers generated 0.8 1.0
Paul Feeney, CEO of Quilter plc, commented:
“Over the last quarter more volatile investment markets and geopolitical uncertainty have contributed to weaker investor sentiment resulting in a
market-wide reduction in net retail flows. Year to date flows across the market are down 55% on the comparable period according to the Investment
Association. Against this backdrop, I am pleased to report continued solid performance in NCCF of £1.1 billion (excluding Quilter Life Assurance) in
the third quarter, marginally ahead of the second quarter. Worthy of note is the more cautious approach both we and the advisers who use our platform
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have taken towards defined benefit to defined contribution pension transfers. These totalled £0.3 billion in the third quarter of 2018 versus £0.6 billion
in the comparable period of 2017.
Gross flows into Quilter Investors of £4.3 billion year to date were up 10% on a year earlier and gross sales within Quilter Wealth Solutions, our UK
platform business, remained strong at £6.1 billion year to date, down 9% on the prior year despite the factors referenced earlier. This demonstrates
the benefit of having both a substantial adviser workforce and an open channel actively supporting over 4,000 IFAs. We remain confident in the long
term prospects for our business model. We look forward to reporting our full year results in March 2019.”
Quilter plc data tables for the nine months ended 30 September 2018 (£bn)
AuMA AuMA
as at 31 Market and as at 30
December Gross Gross other September
2017 inflows outflows Net flows movements 2018
Quilter Investors 16.9 4.3 (2.0) 2.3 (0.4) 18.8
Quilter Cheviot 23.6 2.0 (1.4) 0.6 0.2 24.4
Quilter Financial Planning 1.2 - - - (0.1) 1.1
Advice & Wealth Management 41.7 6.3 (3.4) 2.9 (0.3) 44.3
Quilter Wealth Solutions 50.2 6.1 (3.4) 2.7 0.5 53.4
Quilter International 19.3 1.3 (1.2) 0.1 0.2 19.6
Quilter Life Assurance(1) 15.3 0.4 (1.9) (1.5) 0.2 14.0
Wealth Platforms 84.8 7.8 (6.5) 1.3 0.9 87.0
Elimination of intra-group assets (12.1) (2.6) 1.1 (1.5) 0.4 (13.2)
Quilter plc 114.4 11.5 (8.8) 2.7 1.0 118.1
AuMA AuMA
as at 31 Market and as at 30
December Gross Gross other September
2016 inflows outflows Net flows movements 2017
Quilter Investors 12.1 3.9 (1.5) 2.4 0.8 15.3
Quilter Cheviot 20.7 2.2 (1.2) 1.0 1.3 23.0
Quilter Financial Planning - - - - 1.2 1.2
Advice & Wealth Management 32.8 6.1 (2.7) 3.4 3.3 39.5
Quilter Wealth Solutions 41.4 6.7 (3.4) 3.3 2.9 47.6
Quilter International 16.9 1.5 (0.9) 0.6 0.5 18.0
Quilter Life Assurance(1) 15.5 1.0 (2.2) (1.2) 0.8 15.1
Wealth Platforms 73.8 9.2 (6.5) 2.7 4.2 80.7
Elimination of intra-group assets (8.4) (2.6) 1.0 (1.6) (0.6) (10.6)
Quilter plc 98.2 12.7 (8.2) 4.5 6.9 109.6
(1)Includes other shareholder AuMA of £0.4bn included in Q3 2018 (Q4 2017: £0.2bn, Q4 2016: £0.2bn and Q3 2017: £0.1bn).
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Quilter plc data tables for the three months ended 30 September 2018 (£bn)
AuMA AuMA
as at 30 Market and as at 30
June Gross Gross other September
2018 inflows outflows Net flows movements 2018
Quilter Investors 18.4 1.3 (0.8) 0.5 (0.1) 18.8
Quilter Cheviot 24.1 0.5 (0.4) 0.1 0.2 24.4
Quilter Financial Planning 1.2 - - - (0.1) 1.1
Advice & Wealth Management 43.7 1.8 (1.2) 0.6 - 44.3
Quilter Wealth Solutions 52.3 1.8 (1.2) 0.6 0.5 53.4
Quilter International 19.2 0.4 (0.4) - 0.4 19.6
Quilter Life Assurance(1) 14.5 0.1 (0.6) (0.5) - 14.0
Wealth Platforms 86.0 2.3 (2.2) 0.1 0.9 87.0
Elimination of intra-group assets (13.2) (0.7) 0.5 (0.2) 0.2 (13.2)
Quilter plc 116.5 3.4 (2.9) 0.5 1.1 118.1
AuMA AuMA
as at 30 Market and as at 30
June Gross Gross other September
2017 inflows outflows Net flows movements 2017
Quilter Investors 14.1 1.4 (0.5) 0.9 0.3 15.3
Quilter Cheviot 22.5 0.7 (0.3) 0.4 0.1 23.0
Quilter Financial Planning 1.2 - - - - 1.2
Advice & Wealth Management 37.8 2.1 (0.8) 1.3 0.4 39.5
Quilter Wealth Solutions 45.9 2.3 (1.1) 1.2 0.5 47.6
Quilter International 17.8 0.4 (0.2) 0.2 - 18.0
Quilter Life Assurance(1) 15.6 0.2 (0.9) (0.7) 0.2 15.1
Wealth Platforms 79.3 2.9 (2.2) 0.7 0.7 80.7
Elimination of intra-group assets (9.8) (0.9) 0.2 (0.7) (0.1) (10.6)
Quilter plc 107.3 4.1 (2.8) 1.3 1.0 109.6
(1)Other shareholder AuMA of £0.4bn included in Q3 2018 (Q2 2018: £0.4bn, Q2 2017: £nil and Q3 2017: £0.1bn).
Business unit descriptor:
Previous New
Intrinsic Quilter Financial Planning
Old Mutual Wealth Private Client Advisers Quilter Private Client Advisers
UK Platform Quilter Wealth Solutions
International Quilter International
Heritage Quilter Life Assurance
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Enquiries
Investor Relations
John-Paul Crutchley UK +44 20 7002 7016
Media
Vee Montebello UK +44 20 7778 9550
Camarco
Geoffrey Pelham-Lane UK + 44 20 3757 4985
Aprio (South Africa)
Julian Gwillim SA + 27 11 880 0037
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.
JSE Sponsor: J.P. Morgan Equities South Africa (Pty) Ltd
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