Our opinion on the current state of QLT

Oct 19, 2023

Quilter Plc (QLT) is a company spun out of Old Mutual as part of that group's "managed separation" process. It was admitted to trading on the London Stock Exchange (LSE) and has had a secondary listing on the JSE from 25th June 2018 following the issue of a prospectus on 20th April 2018. Quilter is a UK financial services group which offers asset management in the UK and internationally. It has 900 000 customers and had GBP101,7bn assets under management (AUM) at 30th June 2023. It is also involved in life assurance. The company has a good track record as a multi-manager for client wealth. More than 60% of Quilter's shareholders are South African institutions. As this company is wholly based overseas it is a rand-hedge. Any strengthening of the rand against the British pound will see this share fall and vice versa. In its results for the six months to 30th June 2023 the company reported AUM up 2% and adjusted earnings per share (EPS) of 4,3p compared with 3,2p in the previous period. In a report on the third quarter the company said that AUM was unchanged but, "Third quarter core business net inflows of £1 million contrasted with net inflows of £324 million in the corresponding period of 2022". The share has been moving sideways since June 2022 and may be due for a new upward trend soon. We regard this company as solid rand hedge and an institutional favourite. As the UK economy recovers it should do well.