Quilter chief executive Paul Feeney said the group needed to implement a new platform and execute a smooth migration for existing clients.
Feeney said Quilter also had to invest in growth by recruiting and building its adviser and investment manager base as well as optimising operating leverage. Feeney said the group remained confident of its strategic path and growth prospects.
“We are very much where we expected to be at this stage,” Feeney said. “While short-term market fluctuations and Brexit-induced uncertainty may exacerbate market volatility or temper momentum in near-term flows, we operate in a large and fragmented market that has plenty of growth potential.”
Quilter, formerly known as Old Mutual Wealth, was listed separately on the London Stock Exchange and the JSE in June after the managed separation process from Old Mutual Plc.
In the first half of 2018 the group said it celebrated a significant moment in its history.
Feeney said Quilter was satisfied with the level of investor engagement and interest from both new and existing investors. In the six months to end June, Quilter reported a 16percent increase in adjusted profit to £110million (R1.9billion) despite an increase in head office costs of £10m. The group said this was reflective of costs incurred during the separation from Old Mutual Plc to a standalone group.
“Growth in integrated flows of 17percent and profit of 16 percent demonstrate the strength of the Quilter business model. We are also delighted to announce a special interim dividend of 12pence per share, returning £221m from the sale of our single strategy business to our shareholders." The group reported a 25percent increase in adjusted diluted earnings per share of 5.5p, up from 4.4p as compared to last year.
The group said excluding Quilter Life Assurance, net client cash flow (NCCF) was £3bn, a reduction of £0.4bn from the record levels of £3.4bn a year ago representing 6percent of opening assets under management/administration and was ahead of its annualised target growth of 5percent in the medium term.
Overall NCCF of £2.2bn was down 31percent compared to last year’s £3.2bn, largely due to the pre-announced run-off of the institutional life book within its Quilter Life Assurance business and the natural attrition of the rest of that book.
Quilter rose 1 percent on the JSE on Wednesday to close at R26.08.