Unbundling unlocks value for Old Mutual
As Old Mutual goes through managed separation, investors can buy into strong wealth management business
Old Mutual CEO Bruce Hemphill’s decision to go through a managed separation of the group looks more and more like common sense as time goes on. There will be an immediate unlocking. One of the benefits will be for investors to buy shares directly into Quilter. Quilter CEO Paul Feeney calls it a vertically integrated business. He says the core is 200,000 clients receiving financial advice from the almost 2,000 advisers accredited to Quilter. It is second only to St James’s Place, which has 3,300 advisers. Quilter is certainly a far stronger business than Gerrards, a very low-margin private stockbroker with unpredictable income which Old Mutual acquired in its early days in London. The Quilter clients are predominantly in the affluent sector with assets of between £100,000 and £5m. A further 4,000 independent advisers with 700,000 clients use the platform, which is similar to an SA-linked investment platform such as Glacier or Absa Investment Management Services. Quilter has the secon...
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