Wrap Text
Fourth Quarter 2019 Trading Statement
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")
29 January 2020
Quilter plc
Fourth Quarter 2019 Trading Statement
Quilter plc (the “Group”) reports positive Q4 net flows; Platform Transformation Programme remains on schedule.
Highlights
• Assets under Management and Administration (“AuMA”) of £110.4 billion at year-end (+13% from 31 December 2018) with growth supported by
positive market movements.
• Fourth quarter gross sales of £3.5 billion, 17% higher than the prior year period (£3.0 billion).
• Fourth quarter Net Client Cash Flow inflow (“NCCF”) of £0.5 billion, excluding Quilter Life Assurance (Q4 2018: £0.6 billion).
o Quilter Cheviot continued to generate year-on-year gross sales momentum, totalling £0.7 billion in the fourth quarter (Q4 2018:
£0.6 billion). Although the business experienced net outflows of £0.8 billion for the year, reflecting the impact of the previously announced
departures of some investment managers, the declining trend in outflows led to a net neutral NCCF out-turn in the fourth quarter.
o Strong fourth quarter performance from Quilter International with gross flows of £0.8 billion (Q4 2018: £0.5 billion).
• Annual NCCF inflow of £0.3 billion, excluding Quilter Life Assurance, reflected a turnaround from the net outflow of £0.2 billion for the nine months
to end-September 2019.
• 2019 integrated net flows of £2.6 billion continue to demonstrate the robustness of the Quilter business model (2018: £4.7 billion).
• Platform Transformation Programme update: Initial migration of assets onto the new UK platform is currently planned for the weekend of
22/23 February 2020, with notice given to advisers and customers involved.
Quilter plc: Three months ended 31 December 2019
Quilter plc excl. Quilter Life Assurance (£bn), unaudited Q4 2019 Q4 2018
Gross sales 3.5 3.0
NCCF 0.5 0.6
Total integrated net flows 0.8 1.0
of which Quilter Financial Planning generated 0.6 0.8
Defined Benefit to Defined Contribution transfers 0.2 0.3
Quilter plc: Year ended 31 December 2019
Quilter plc excl. Quilter Life Assurance (£bn), unaudited 2019 2018
Gross sales 12.3 14.2
NCCF 0.3 4.7
1
NCCF/opening AuMA 0% 5%
Total integrated net flows 2.6 4.7
of which Quilter Financial Planning generated 2.6 3.8
Quilter plc excl. Quilter Life Assurance (£bn), unaudited 31 December 2019 31 December 2018
2
AuMA 110.4 97.7
1
NCCF as a % of opening AuMA.
2
Following the disposal of Quilter Life Assurance, which completed on 31 December 2019, AuMA includes assets managed and administered on behalf of clients and
policyholders only and therefore excludes assets that support shareholder capital and cash requirements. All comparatives have accordingly been restated on this basis.
Paul Feeney, CEO of Quilter plc, commented:
“2019 was a good year for market performance but a challenging year for net client flows. We were pleased to finish the year in a positive position.
Net inflows of £0.3 billion for the year represented a sharp turnaround from the net outflow of £0.2 billion for the nine months to end-September.
1
“Looking across our businesses, the integration of our advice acquisitions is progressing well and both Lighthouse and Charles Derby are well
positioned to contribute to net flows in 2020. Quilter Cheviot delivered consistently strong gross sales throughout 2019 reflecting the quality of its
franchise supported by the contribution from new hires made to strengthen the business. The outflow associated from the investment managers who
departed in mid-2018 declined to £0.3 billion in the fourth quarter from £0.6 billion in the third quarter. Our International business, where new business
mandates can be sizeable but inherently more irregular, ended the year well with an annual increase of 67% in NCCF.
“Net flows into Wealth Solutions remain subdued ahead of migrating advisers and customers onto our new UK platform this year. This, in turn, led to
more modest flows into Quilter Investors. Stable gross flows in the fourth quarter relative to the prior year demonstrate the strength of our adviser and
customer-focussed platform business model. More importantly, we are pleased that the initial migration of customers onto our new platform is currently
planned for the weekend of 22/23 February 2020. Our advisers and clients who are involved in this process have been notified accordingly. Our new
UK platform will be transformational for Quilter – it has taken time to get to this point and we are excited about the ability to drive further business
growth once we have fully migrated onto the new platform by the end of this summer.”
Quilter plc data tables for the three months ended 31 December 2019 (£bn), unaudited
AuMA AuMA
as at Market and as at
30 September Gross Gross other 31 December
Q4 gross flows, net flows & AuMA (£bn)¹ 2019 sales outflows Net flows movements 2019
Quilter Investors 20.2 2.0 (1.9) 0.1 0.5 20.8
Quilter Cheviot 23.8 0.7 (0.7) - 0.4 24.2
Quilter Financial Planning 0.8 - - - - 0.8
Advice & Wealth Management 44.8 2.7 (2.6) 0.1 0.9 45.8
Quilter Wealth Solutions 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 excl. Quilter Life Assurance 108.2 3.5 (3.0) 0.5 1.7 110.4
Quilter Life Assurance 10.3 - (1.2) (1.2) (9.1) -
AuMA AuMA
as at Market and as at
30 September Gross Gross other 31 December
2018 sales outflows Net flows movements 2018
Quilter Investors 18.6 1.1 (0.6) 0.5 (1.4) 17.7
Quilter Cheviot 24.2 0.6 (0.5) 0.1 (2.1) 22.2
Quilter Financial Planning 1.0 - - - (0.2) 0.8
Advice & Wealth Management 43.8 1.7 (1.1) 0.6 (3.7) 40.7
Quilter Wealth Solutions 52.9 1.6 (1.2) 0.4 (3.9) 49.4
Quilter International 19.5 0.5 (0.3) 0.2 (1.4) 18.3
Wealth Platforms 72.4 2.1 (1.5) 0.6 (5.3) 67.7
Elimination of intra-group assets (11.0) (0.8) 0.4 (0.4) 0.7 (10.7)
Quilter plc excl. Quilter Life Assurance 105.2 3.0 (2.2) 0.8 (8.3) 97.7
Quilter Life Assurance 12.9 0.2 (1.0) (0.8) (0.9) 11.2
2
1
Following the disposal of Quilter Life Assurance, which completed on 31 December 2019, AuMA includes assets managed and administered on behalf of clients and
policyholders only and therefore excludes assets that support shareholder capital and cash requirements. All comparatives have accordingly been restated on this basis
3
Quilter plc data tables for the twelve months ended 31 December 2019 (£bn), unaudited
AuMA AuMA
as at Market and as at
Full year gross flows, net flows & AuMA 31 December Gross Gross other 31 December
(£bn)¹ 2018 sales outflows Net flows movements 2019
Quilter Investors 17.7 4.9 (4.4) 0.5 2.6 20.8
Quilter Cheviot 22.2 2.6 (3.4) (0.8) 2.8 24.2
Quilter Financial Planning 0.8 - - - - 0.8
Advice & Wealth Management 40.7 7.5 (7.8) (0.3) 5.4 45.8
Quilter Wealth Solutions 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 77.4
Elimination of intra-group assets (10.7) (3.2) 2.4 (0.8) (1.6) (13.1)
Quilter plc excl. Quilter Life Assurance 97.7 12.3 (12.0) 0.3 12.4 110.4
Quilter Life Assurance 11.2 0.4 (3.9) (3.5) (7.7) -
AuMA AuMA
as at Market and as at
31 December Gross Gross other 31 December
2017 sales outflows Net flows movements 2018
Quilter Investors 16.7 5.5 (2.7) 2.8 (1.8) 17.7
Quilter Cheviot 23.5 2.5 (1.8) 0.7 (2.0) 22.2
Quilter Financial Planning 1.1 - - - (0.3) 0.8
Advice & Wealth Management 41.3 8.0 (4.5) 3.5 (4.1) 40.7
Quilter Wealth Solutions 49.6 7.7 (4.6) 3.1 (3.3) 49.4
Quilter International 19.2 1.8 (1.5) 0.3 (1.2) 18.3
Wealth Platforms 68.8 9.5 (6.1) 3.4 (4.5) 67.7
Elimination of intra-group assets (9.8) (3.3) 1.1 (2.2) 1.3 (10.7)
Quilter plc excl. Quilter Life Assurance 100.3 14.2 (9.5) 4.7 (7.3) 97.7
Quilter Life Assurance 14.6 0.6 (2.9) (2.3) (1.1) 11.2
1
Following the disposal of Quilter Life Assurance, which completed on 31 December 2019, AuMA includes assets managed and administered on behalf of clients and
policyholders only and therefore excludes assets that support shareholder capital and cash requirements. All comparatives have accordingly been restated on this basis.
4
Enquiries
Investor Relations:
John-Paul Crutchley +44 (0)20 7002 7016
Keilah Codd +44 (0)20 7002 7054
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
Aprio (South Africa)
Julian Gwillim +27 (0)11 880 0037
Company Secretary:
Patrick Gonsalves +44 (0)20 7778 9670
Sponsor:
J.P. Morgan Equities South Africa Proprietary Limited
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 £110.4 billion in customer investments (as at 31 December 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 businesses, Quilter Financial Planning, Quilter Private Client Advisers and
Quilter Financial 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 and Quilter International.
Since its IPO in June 2018, the Group’s businesses have progressively re-branded to Quilter. The UK Platform will be the final business to rebrand;
this will follow the safe delivery of the new platform technology. Descriptor for re-branded business units:
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 Wealth Solutions
International Quilter International
Heritage Quilter Life Assurance
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.
5
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.
6
Date: 29-01-2020 09:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
