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:
- 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).
- 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.
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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.
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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.
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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.