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QUILTER PLC - Quilter plc (the Group) reports resilient NCCF in a challenging market

Release Date: 17/04/2019 08:00
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Quilter plc (the “Group”) reports resilient NCCF in a challenging market

 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")



17 April 2019
                                                             Quilter plc
                                                  First Quarter 2019 Flows Update

Quilter plc (the “Group”) reports resilient NCCF in a challenging market

Highlights

 - First quarter Net Client Cash Flow (NCCF) of £0.5 billion, excluding Quilter Life Assurance (Q4 2018: £0.6 billion).
 -  AuMA of £114.9 billion (+5.1% from 31 December 2018) supported by market performance.
 -   Integrated net flows of £0.6 billion continuing to demonstrate the robustness of the Quilter business model.
 -   Outflows of £0.9 billion within Quilter Life Assurance included £0.6 billion in respect of the deliberate run-off of the institutional
     book.
 -   Offer for Lighthouse Group plc announced on 3 April 2019.

Quilter plc highlights for the three months ended 31 March 2019
Quilter plc (£bn)                                                                                  Q1 2019 YTD              Q1 2018 YTD
NCCF                                                                                                         (0.2)                     1.6
NCCF (excluding Quilter Life Assurance)                                                                        0.5                     2.0
NCCF/opening AuMA (excluding Quilter Life Assurance), annualised                                               2%                      8%
Gross sales                                                                                                    3.2                     4.4
Total integrated net flows (excluding Quilter Life Assurance)                                                  0.6                     1.5
          Of which Quilter Financial Planning & Private Client Advisers generated                              0.6                     1.1

Quilter plc (£bn)                                                                                 31 March 2019      31 December 2018
Assets under Management/Administration (AuMA)                                                               114.9                   109.3

Overview
First quarter NCCF of £0.5 billion, excluding Quilter Life Assurance, remained resilient in the context of the challenging market
conditions and was broadly as indicated with our full year results. In contrast, the first quarter of 2018 was particularly strong for
both gross and net flows. First quarter 2019 NCCF, excluding Quilter Life Assurance, represented 2% of opening AuMA on an
annualised basis and reflects the impact that the uncertain UK political environment continues to have on discretionary investor
sentiment. Notwithstanding the challenging flow environment, the rebound in equity markets and strong investment performance
have supported overall AuMA which stood at £114.9 billion at the end of the first quarter (+5.1% from 31 December 2018).
This was ahead of the prior year (£111.6 billion) and in line with the average for 2018 (£114.7 billion).
Overall trends in gross sales and outflows across each business were similar to the last quarter of 2018. The expected loss of a
£0.2 billion institutional-like portfolio within Quilter Cheviot is not reflected in the first quarter results but is anticipated to be
withdrawn during the second quarter. The Group delivered good levels of integrated flows of £0.6 billion relative to total NCCF for
the quarter, underlining the value of Quilter’s integrated advice-led model and customer proposition. Outflows of £0.9 billion within
Quilter Life Assurance included £0.6 billion in respect of the deliberate run-off of the institutional book, in line with expectations.
Defined Benefit to Defined Contribution gross sales of £0.2 billion in the first quarter of 2019 contrasted with £0.6 billion in the first
quarter of 2018 as the Group’s attitude towards this source of new business remains cautious.
The Lighthouse Scheme document was circulated to shareholders on 15 April 2019. Completion of the acquisition continues to be
expected towards the end of the second quarter, subject to the satisfaction of the outstanding conditions including Lighthouse
shareholders’ approval and FCA consent.

Paul Feeney, CEO of Quilter plc, commented:
“As indicated at our full year results, net client cash flows have continued to be affected by the challenging markets. However, we
continue to be encouraged by the resilience of integrated flows which have remained robust during this period, and the high level of
customer asset retention across our businesses which was broadly stable on 2018 at 89%. While near-term headwinds remain, this
demonstrates that our clients and their advisers value Quilter’s integrated advice-led model, and continues to be supportive of our
operating margin and revenue outlook.
“To support our continued strategic progress, we were delighted to announce the recommended cash offer for Lighthouse Group.
The Scheme document was posted to their shareholders earlier this week and we look forward to their advisers joining the Quilter
family, and helping to secure our position as the best place to go for trusted financial advice in the UK.”




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Quilter plc Q1 2019 Flows Update
YTD Gross flows, NCCF and AuMA (£bn)

                                               AuMA                                                              AuMA
                                                                                                   Market
                                              as at 31       Gross         Gross                                as at 31
                                                                                      Net flows  and other
                                            December        inflows      outflows                                March
                                                                                                movements
                                                 2018                                                              2019
            Quilter Investors                    17.8             1.0         (0.8)        0.2           1.2       19.2
            Quilter Cheviot                      22.4             0.7         (0.6)        0.1           1.2       23.7
            Quilter Financial Planning             1.0               -            -           -          0.1        1.1
Advice & Wealth Management                       41.2             1.7         (1.4)        0.3           2.5       44.0

            Quilter Wealth Solutions             49.9             1.6         (1.2)        0.4           2.8       53.1
            Quilter International                18.4             0.4         (0.3)        0.1           0.7       19.2
            Quilter Life Assurance               12.4             0.1         (0.9)       (0.8)          0.6       12.2
Wealth Platforms                                 80.7             2.1         (2.4)       (0.3)          4.1       84.5

Elimination of intra-group assets               (12.6)           (0.6)         0.4        (0.2)         (0.8)     (13.6)

Quilter plc                                     109.3             3.2         (3.4)       (0.2)          5.8      114.9
                                                AuMA                                                              AuMA
                                                                                                     Market
                                              as at 31          Gross        Gross                              as at 31
                                                                                      Net flows    and other
                                            December           inflows     outflows                              March
                                                                                                  movements
                                                 2017                                                              2018
            Quilter Investors                    16.9             1.6         (0.6)        1.0          (0.8)      17.1
            Quilter Cheviot                      23.6             0.8         (0.5)        0.3          (1.1)      22.8
            Quilter Financial Planning             1.2               -            -           -             -       1.2
Advice & Wealth Management                       41.7             2.4         (1.1)        1.3          (1.9)      41.1

            Quilter Wealth Solutions             50.2             2.3         (1.0)        1.3          (1.8)      49.7
            Quilter International                19.3             0.5         (0.4)        0.1          (0.8)      18.6
            Quilter Life Assurance               15.3             0.2         (0.7)       (0.5)         (0.5)      14.4
Wealth Platforms                                 84.8             3.0         (2.1)        0.9          (3.0)      82.7

Elimination of intra-group assets               (12.1)           (1.0)         0.4        (0.6)          0.4      (12.2)

Quilter plc                                     114.4             4.4         (2.8)        1.6          (4.4)     111.6


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




                                                           3
Quilter plc Q1 2019 Flows Update
Enquiries:


Investor Relations:
John-Paul Crutchley                                          +44 (0)20 7002 7016

Keilah Codd                                                  +44 (0)20 7002 7054

Media:
Tim Skelton-Smith                                            +44 (0)7824 145 076

Camarco
Geoffrey Pelham-Lane                                         +44 (0)20 3757 4985

Aprio (South Africa)
Julian Gwillim                                               +27 (0)11 880 0037
Company Secretary:
                                                             +44 (0)20 7778 9670
Patrick Gonsalves



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 £114.9 billion in investments (as at 31 March 2019).

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 network, Intrinsic; Quilter Private Client Advisers; the
discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.
Wealth Platforms includes the Old Mutual Wealth UK Platform; Old Mutual International, including AAM Advisory in Singapore;
and the Old Mutual Wealth Heritage life assurance business.

The Quilter plc businesses are being re-branded to Quilter over a period of approximately two years:

    -    The Multi-asset business is now Quilter Investors
    -    Intrinsic to Quilter Financial Planning
    -    The private client advisers business is now Quilter Private Client Advisers
    -    The UK Platform to Quilter Wealth Solutions
    -    The International business to Quilter International
    -    The Heritage life assurance business to Quilter Life Assurance
    -    Quilter Cheviot will retain its name.




17 April 2019

Sponsor:
J.P. Morgan Equities South Africa Proprietary Limited




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Quilter plc Q1 2019 Flows Update

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