London-based Quilter, Old Mutual’s former wealth management business, has reported a tenfold rise in net inflows to £1bn (R20.9bn) in its third quarter to end-September, supported by increased usage of its new platform.
Assets under management from continuing operations rose 18% to £108bn year on year to end-September, supported by increased usage of its new platform by independent financial advisers.
Quilter, listed in London and Johannesburg, has spent about £500m (R10bn) on a new technology platform that offers easier and more secure management of assets.
The group, which was hived off from Old Mutual in 2018 in a four-way break-up of the former financial services conglomerate, has since moved to simplify its focus in a bid to become the go-to shepherd of the ultra-wealthy’s money.
Quilter, valued at R55.8bn on the JSE, has been selling off its noncore assets, and its sale of Quilter International marks the end of that programme. The £480m sale is expected to be concluded by the end of 2021, and the group has proposed returning £350m to shareholders.
“Three years on from our listing, we have successfully concluded the initial phase of our strategic journey,” said CEO Paul Feeney in a statement.
“Selling Old Mutual Global Investors, Quilter Life Assurance and Quilter International have simplified our operating model, removed businesses that weighed on our growth trajectory and together have allowed us to undertake special capital returns of around £1bn to our shareholders.”
“We now look forward to executing the next stage of Quilter’s strategic journey, which will be characterised by a focus on growth and efficiency,” he said.
Quilter is being reorganised into two client-focused 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.
In morning trade, Quilter’s shares were trading 0.53% lower at R33.94, having risen 7.84% so far in 2021 and 13% since the start of 2020.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.