26 January 2022

Quilter plc

Fourth Quarter 2021 Trading Statement

Quilter plc reports a strong final quarter of 2021 with substantially improved year-on-year net flows

Note: all figures are on a continuing basis, excluding Quilter International, the sale of which completed on 30 November 2021.

Highlights:

·      Assets under Management and Administration ("AuMA") of £111.8 billion at the end of December 2021 (+13% from 31 December 2020), with growth supported by improved net flows and positive market movement

o  Year-to-date net inflows of £4.0 billion (2020: £1.5 billion) representing 4% of opening AuMA (2020: 2%).

o  Fourth quarter net inflows of £1.0 billion (2020: £0.3 billion).

o  Average AuMA, the principal driver of net management fee revenue, of £105.3 billion (2020: £90.2 billion), up 17%.

·     Strong performance from the new Quilter Investment Platform with £9.0 billion gross flows (+58%) and £3.5 billion net inflows (+136%) during the year coupled with stable retention. Net Platform inflows represented 6% of opening assets under administration (2020: 3%).

·     Defined Benefit to Defined Contribution transfers in the fourth quarter of £114 million and £581 million for 2021 both lower than the comparable period of £177 million and £862 million respectively.

Paul Feeney, Chief Executive Officer of Quilter plc, commented:

"2021 was a year of continued business challenge caused by the COVID pandemic coupled with a degree of market volatility. However, it was also a year which highlighted the strength of our advice-based model, which delivered consistent flows of around £1 billion a quarter into our business during 2021 and we expect momentum to continue to improve in 2022.

"I am delighted with how our new Quilter Investment Platform has been received by financial advisers and customers with a sharp increase in gross flows to £9.0 billion (+58%) and net inflows of £3.5 billion (+136%) during the year. Gross flows from IFAs were up 63% year-on-year reversing the declines we saw from that channel in recent years in the lead up to the Platform's migration to new technology. I expect this momentum to build as we begin to encourage new IFA firms to start using our new platform given the wider range of products we can offer and assets we can now hold.

"I am also pleased with the significant year-on-year improvement in flows into Quilter Cheviot. Net inflows of 2021 of £282 million in the fourth quarter of 2021 and £1,059 million for the full year were both significantly higher than the comparable period of 2020 (£17 million and £264 million respectively). Full year Quilter Cheviot net inflows represented 4% of opening assets under management (2020: 1%). Although rebalancing of our MPS portfolio over the course of the year contributed to a drag in net inflows into Quilter Investors, the launch of our repositioned Wealth Select range later this year will remove this potential headwind. I am also delighted to welcome Marcus Brookes as Chief Investment Officer of Quilter Investors. Marcus will join us in the second quarter and brings great experience and insight in creating multi-asset solutions that meet client expectations, which will underpin the next phase of Quilter Investors' growth."

Reference: Historical disclosure of flows and assets in Quilter's new segmentation are included in an appendix to this announcement.

Enquiries

Investor Relations:

John-Paul Crutchley                             +44 (0)7741 385 251

Keilah Codd                                          +44 (0)7776 649 681

Media:

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 £111.8 billion in customer investments (as at 31 December 2021).

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: Affluent and High Net Worth.

Affluent encompasses the financial planning businesses, Quilter Financial Planning, the Quilter Investment Platform and Quilter Investors, the multi-asset investment solutions business.

High Net Worth includes the discretionary fund management business, Quilter Cheviot, together with Quilter Private Client Advisers.

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.

Appendix - Quarterly Flow disclosure - Q1 to Q3 2021, and Q1 to Q3 2020