Quilter : Download the Quilter Investor Presentation – Spring 2022

Investor introduction

Spring 2022

Investment overview and Quilter's journey to date

UK Wealth: a secular growth opportunity

UK wealth management market growth and forecast¹

AuA, £tn

c.2.2-2.5

CAGR

+6 to 10%

c.1.8

CAGR	0.7	Retail Advised²
+13%
		Our
		focus
c.0.9		0.3
0.3	0.7	Discretionary³
		0.4
0.4
	0.4	Direct to
0.2	Consumer³
FY 2015	2021		FY 2024e

• Strong market growth as flows consolidate onto Platforms
• Retail advised market continues to be a high growth market
• Discretionary market remains largest wealth market sector

Sources and notes:

1. Fundscape Platform report Q2'21, June 2021. Retail Advised Platform AuA, adding £144bn St. James Place AuM.
2. Compeer UK Wealth Management Report, 2021.

3. Wealth managers and private banks, Boring Money Online Investing June 2021. Estimated H1 AuM, Wealth manager and Private banks Discretionary AUM only.	3
Using different sources results in some overlap in underlying participants and AuMA.

Industry dynamics: Retirement demographics continuing advice demand

UK England & Wales Population¹

('000 by age year, 2018)						Turned 60 in 2019
1,000							- potentially requiring
						retirement advice
					925
900									Baby boomers
							787		born in 1947
800
700
600						700k+ people turned 65 and
						925k+ turned 50 in 2019
500						- potentially requiring
					retirement advice
400				<50% of people aged 45-54 feel
300				they understand enough about
			pensions to make decisions about
					saving for retirement²
200					45 to 54 household	55 to 64 household		65+ household
100					Pension & Financial	Pension & Financial		Pension & Financial
				wealth: c.£400k³	wealth: c.£540k³		wealth: c.£360k³
0
25	30	35	40	45	50	55	60	65	70	75	80	85	90

1. Source: ONS.
2. Source: ONS "Early indicator estimates from Wealth and Assets Survey", published August 2020.

3. Source: ONS "Total wealth in Great Britain: April 2016 to March 2018", published December 2019. Pension Wealth and 'net' Financial wealth excludes physical wealth (assets) and net property	4
wealth.

Industry dynamics: regulatory and fiscal changes driving disruption

Pension reform

Government

initiatives

FCA thematic

reviews

Multiple regulatory regimes & directives

• Provides customers with opportunity for consolidation and flexibility to manage retirement assets
• Demand and complexity driving need for advice
• Increased longevity of client relationships for wealth managers versus compulsory annuitisation
• Auto-enrolment increasing flows into pensions, albeit slowly - future customers for wealth managers
• Increased ISA and JISA allowances and introduction of NISA and Junior SIPPS
• Uncertainty around tax and allowances on savings, pension and IHT driving propensity for advice
• Asset management market study remedies focussed on driving competitive pressure in asset management, investor value for money and effectiveness of intermediaries
• Investment Platform study focused on improving competition and better consumer outcomes
• DB pension transfer advice framework designed to promote better, industry-wide, customer outcomes
• Further increase in regulatory burden and cost of compliance for advisers, particularly low scale players and new entrants
• Designed to increase transparency for customers and strengthen individually accountability within the financial services industry

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