Old Mutual Wealth (OMW) chief executive Paul Feeney today reaffirmed the company’s intention to list on the London Stock Exchange (LSE) early next year and announced that OMW would henceforth be known as Quilter, the name under which the listing will take place.
While the primary listing will take place on the LSE, there are plans for a secondary listing in South Africa, on the Johannesburg Stock Exchange, an OMW/Quilter spokesperson disclosed to International Investment.
The move represents a separation from Old Mutual plc, with Quilter plc to be the new company through which the former OMW will now trade.
Additionally, there will be two businesses combined under the Quilter brand, namely ‘Advice and Wealth Management’ and ‘Wealth Platforms’.
It will take a period of approximately two years to complete the re-branding process, with no “immediate changes” for customers, said the company.
Subsumed within the Advice and Wealth Management division will be Intrinsic, which will become Quilter Financial Planning, and including Private Client Advisers, which will become Quilter Private Client Advisers.
The multi-asset business will become Quilter Investors and Quilter Cheviot, which will retain its name, the company clarified.
And the Wealth Platforms is to comprise the UK Platform, set to rebadge as Quilter Wealth Solutions, and what is currently known as International business will become Quilter International. The Heritage life assurance business will become Quilter Life Assurance.
Chief executive Paul Feeney, pictured above, said that OMW had made “tremendous progress” in the past five years in building what he termed a “unique and successful” business, saying that the company was now “well-positioned” to build on those achievements in what he described as one of the world’s “largest and growing” wealth-management markets.
“Having two distinct but complementary segments,” Feeney added, “will help us to continue to deliver good customer outcomes for new and existing customers.”
He pointed out that the company’s recently reported Q3 year-to-date flows demonstrated “continued strong demand” for OMW’s “investment solutions” and services.
Feeney said that the company was excited at the prospect of listing early next year, saying that OMW/Quilter would offer a “compelling investment opportunity” based upon delivering “strong and sustainable” returns for shareholders as a “fast-growing, independent and publicly listed company”.
The company also said that it expected to be in a position to deliver the new UK platform transformation – the FNZ system –by the end of 2018/early 2019, “with the migration of the book swiftly thereafter”.
The cost of migrating to the new platform remains, as previously disclosed by OMW, between £120m and £160m.
Finally, the company will be closing the Institutional business within Heritage to new customers as it is “not core to the strategy” and was, the company said, “very low margin”, stating that it expected to close this book through attrition “over the next couple of years”.