Sell-side roadshow

Autumn 2023

Client pricing: open, unbundled, with choice at the heart

Average fees example, reflecting current predominant choice by clients & their advisers

% of investment

Total

Upfront

Ongoing p.a.

Equivalent

p.a.

Total

Financial

p.a/

Wrapper /

Investment

Total

Advice

Total

Advice

A+B

Advice

10 Years

Admin

Management

(B)

Included?

(A)

Average fees, most popular

QFP WS Blend Risk Level 5

1.14

1.14

0.11

0.66

0.21

0.60

1.47

1.58

Yes

investment, network adviser

QFP - WS Active RL5

1.14

1.14

0.11

0.66

0.21

0.70

1.57

1.68

Yes

Average fees for 500K

QFP - WS Blend RL5

1.14

1.14

0.11

0.66

0.21

0.60

1.47

1.58

Yes

QFP - WS Passive RL5

1.14

1.14

0.11

0.66

0.21

0.22

1.09

1.20

Yes

investment,

Network adviser Platform

QFP Cirilium Balanced Active

1.14

1.14

0.11

0.66

0.21

1.12

1.99

2.10

Yes

charge, various solutions

QFP Cirilium Balanced Blend

1.14

1.14

0.11

0.66

0.21

0.73

1.60

1.71

Yes

QFP Cirilium Balanced Passive

1.14

1.14

0.11

0.66

0.21

0.37

1.24

1.35

Yes

Source: Quilter plc - Based on actual charges made to clients over the last 12 months, produced for publication in October 2023.

Notes:

  1. The outcome highlighted in bold is the outcome currently the predominant choice made by clients and their advisers. Advice + Platform + Wealth Select Blend (risk level 5).
  2. Advice fees are a function of case size, the 114bps and 66bps are the average charges for a £500k portfolio based on actual cases written in 2023 for new business and current ongoing charges.

3.

Platform fee is based on a £500k portfolio.

2

4.

Investment management fee is inclusive of Quilter's margin and that paid to the underlying fund manager.

Platform market: importance of growing share

Market size

Quilter gross IFA flows

Quilter gross outflows

Quilter net IFA flows

New flows, £bn

8% market share, £bn

9% of £55bn

£bn

80

6.4

5

60

4.8

5

40

5

3.2

  • Quilter will continue to improve market share of new IFA flows but overall size of market is an important determinant of the net flow position in any particular year.

1.4

-

(1.8)

3

Platform market: importance of growing share

Market size

Quilter market share

Quilter market share

Quilter market share

New flows, £bn

8% market share, £bn

10% market share, £bn

12% market share, £bn

80

3

1.4

4.6

60

(0.2)

40

1

2.2

(1.0)

(1.8)

  • Quilter will continue to improve market share of new IFA flows but overall size of market is an important determinant of the net flow position in any particular year.

(0.2)

4

Platform: building distribution and growing our market share

Platform Gross market share

%1

14

13

12

11

10

9

Pre-PTP

Post-PTP

8

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23

2017

2018

2019

2020

2021

2022

2023

1. Platform market share sourced from Fundscape.

5

Platform: IFA net flow sources

Quilter Platform IFA channel net flow trends by source of funds

2023 YTD net flows, £m

Largest peers

Life companies

Other Platforms

Listed peers

Consolidators

As at 30 September 2023.

Note: Presentation provides a snapshot of flows. Excludes regular payments and flows from pension providers, ISA/CIA providers and other payments to/from clients.

6

Retention: comparison of constituent parts

Quilter reported

Outflows

Quilter persistency

persistency

on SJP definition*

- regretted

9%

3%

6%

- natural drawdown

91%

97%

  • "Throughout this press release our retention rate is calculated as annualised surrenders and part-surrenders, divided by average funds under management. It excludes regular income withdrawals and

maturities." ~ SJP Press Release 17/10/23.

7

Continuing our efficiency journey

Corporate Activity

2019

2020

2021

2022

2023

2024

2025

  • Sale of Quilter International to Utmost (TSA until end 2023)

• Sale of QLA to ReAssure

• Revised operating model, moving from 5 businesses to 2 segments

• Creation of Shared function centres of excellence

• Decommissioning of legacy technology estate following corporate disposals

•

Single General Ledger

• Automation in retained IT estate post PTP

•

National Advice channel operating model restructuring

•

Investment in modern advice technology

•

Post-pandemic working patterns and corporate simplification reducing property footprint

Optimisation

(2019-2022): £65m

Synergies in corporate functions

Data centre rationalisation

Restructuring advice channel operating model

Simplification

(2021-2024): £45m1

Underpins 2025 operating margin target

Team rationalisation and consolidation

Full implementation of two segment operating model

Increased use of automation

Property savings across corporate footprint

Simplification II

(2023-2025):

£50m cost reduction on 2022 cost base

Governance simplification

Efficiencies from investment in Advice technology

Longer term operating margin goal of 30%

1. Includes £33m announced as delivered and closed in H1 2023 results.

8

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Quilter plc published this content on 24 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 October 2023 15:39:39 UTC.