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Old Mutual Wealth to rebrand as Quilter following managed separation – Investment Week

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Old Mutual Wealth has announced it will operate using the Quilter brand following the separation from its parent company next year, with the business to be re-segmented.

At a showcase event being held for investors and analysts today, Old Mutual Wealth said it will announce it remains on track to list in 2018 and aims to complete this listing as early as possible next year, subject to regulatory and other approvals.

In addition, under the new Quilter brand, the business will be re-segmented into two divisions: ‘Advice and Wealth Management’ and ‘Wealth Platforms’.

The businesses within these two segments will be re-branded to Quilter over a period of approximately two years following separation from Old Mutual and there will be no immediate changes for customers.

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The Advice and Wealth Management segment will include: Intrinsic, which intends to rebrand to Quilter Financial Planning, including Private Client Advisers, which will become Quilter Private Client Advisers; the multi-asset business, which will become Quilter Investors and Quilter Cheviot, which will retain its name.

The Wealth Platforms segment will include the UK platform, which will become Quilter Wealth Solutions and the international business, which is to become Quilter International. Its Heritage life assurance business will become Quilter Life Assurance.

Paul Feeney, chief executive officer, commented: “We have made tremendous progress over the last five years in building this unique and successful business. We are well-positioned to build on what we have achieved in one of the world’s largest and growing wealth management markets.

“Having two distinct but complementary segments will help us to continue to deliver good customer outcomes for new and existing customers. Our recently reported Q3 year-to-date flows demonstrate continued strong demand for our investment solutions and services. However, having individually strong businesses is not enough by itself to drive success. We are focused on ensuring the businesses work together to build better solutions and drive integrated flows.

“We very much look forward to listing in 2018 as Quilter. We believe that we have a compelling investment opportunity as we continue to deliver strong and sustainable returns for shareholders in our own right as a fast-growing, independent and publicly listed company.”

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The group added that Old Mutual Wealth and Old Mutual continue to assess, together with the management of Old Mutual Global Investors (OMGI) led by CEO Richard Buxton, internal and external structures for the single strategy part of that business to continue to develop it further.  But it said OMGI management from the single strategy part of the business will not be presenting at today’s conference.

It has been reported that groups including Challenger and Macquarie Investment Management are engaged in a £550m bidding war for the single strategy part of OMGI.

Meanwhile, the expected timing of delivery and cost estimates of the UK Platform transformation programme remain unchanged. The operational delivery of the FNZ system remains in the order of £120-£160m and the group intends to have the new platform in place by the end of 2018/early 2019, with the migration of the book swiftly thereafter. 

It will also be closing the institutional business within Heritage to new customers as it is not core to the strategy and is very low margin. It is expected this book of business will run-off over the next couple of years.