Stephen Cranston Associate editor

Old Mutual and Sanlam have facilitated the birth of two very different businesses, both of which reported results last week. One is Quilter, formerly Old Mutual Wealth UK. The other, African Rainbow Capital (ARC), wasn’t strictly an offshoot of Sanlam but of its largest shareholder Ubuntu-Botho, chaired by Patrice Motsepe. Quilter is popular among SA institutional money managers. While other financial services players are seeing their margins squeezed, Quilter is talking of raising its return on equity from 27% to 32% by 2021. It has the largest investment platform in the UK, and with more than £50bn, its margin of 0.33% is lucrative, especially just for admin. Quilter boss Paul Feeney says the group has a high share of wealthy clients through its Quilter Cheviot unit, but he says they are mainly hardworking entrepreneurs, not the old-money hunting, shooting and fishing set. Quilter covers most investment needs through a spider’s web of multimanager funds and has the strongest distr...

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