CAPE TOWN - Old Mutual subsidiary Quilter plc is set for a separate listing on the JSE and LSE as it claimed a 14% increase in net client cash flow (NCCP) in the first quarter as a result of resilience in assets under management and administration.
Quilter said on Monday that the NCCP increased to £1.6 billion (R27.3 billion) during the period from £1.4 billion (R24.09 billion) recorded during the first quarter of 2017.
Quilter, based in the UK, was previously called Old Mutual Wealth Management.
Quilter chief executive Paul Feeney said the first quarter NCCF has continued with the strong momentum seen in 2017, particularly in their Advice & Wealth Management segment.
“We have experienced increased net flows across all our businesses, with the exception of Quilter International, which has had a slow start to the year following a very strong final quarter in 2017, and Quilter Life Assurance,” Feeney said.
Quilter is a leading wealth management business in the UK and internationally and oversees £111.6 billion (R1.9 trillion) in customer investments as at the end of March.
It has two segments: Wealth Platforms and Advice and Wealth Management. Wealth Platforms includes the Old Mutual Wealth UK Platform, Old Mutual International, including AAM Advisory in Singapore and the Old Mutual Wealth Heritage life assurance business.
The Advice and Wealth Management includes the financial planning network, Intrinsic; Old Mutual Wealth Private Client Advisers; discretionary fund management business, Quilter Cheviot and Old Mutual Wealth’s multi-asset investment solutions business.
Listing
The group said the formal process of listing Quilter plc on the Johannesburg and London bourses had commenced and was expected to finalise by June.
It said all its businesses would be rebranded to Quilter over a period of approximately two years, following separation from Old Mutual.
The group grew its business in the quarter of 2018, said the NCCF as a proportion of opening assets under management and administration, excluding Single Strategy and Quilter Life Assurance, on an annualised basis was 8%, ahead of its 5% target.
Total integrated flows increased by 50% in the quarter to £1.5 billion (R25.8 billion).
“Generating and growing integrated flows is a key focus of our business as these demonstrate the strength and value of our multi-channel business model.
"It is particularly pleasing that these grew by 50% in the first quarter,” Feeney said.
"However, assets under management and administration of £111.6 billion (R1.9 trillion) declined 2.4% in the quarter as a result of negative market movements of 3.8%, partially offset by positive net flows in the period of 1.4%.
"This compares to a decrease of 8.2% in the FTSE 100 over the same period, demonstrating the relative resilience of our business model and good investment performance during a time of market volatility,” the group said.
However, it said going forward the outlook for its business remains positive and current trading remains in line with expectations.