Our opinion on the current state of QUILTER(QLT)Quilter Plc (QLT) was spun out of Old Mutual as part of its "managed separation" process and began trading on the London Stock Exchange (LSE) with a secondary listing on the JSE from 25th June 2018. Quilter is a UK-based financial services group offering asset management both domestically and internationally. The company serves 900,000 customers and had GBP101.7 billion in assets under management (AUM) as of 30th June 2023. Quilter is also involved in life assurance and has a strong track record as a multi-manager for client wealth. More than 60% of Quilter's shareholders are South African institutions, making it a significant rand-hedge stock. Any strengthening of the rand against the British pound could see the share price fall, while a weakening rand would likely boost the share price.
In its results for the six months to 30th June 2024, Quilter reported core net inflows up 164%, adjusted profit up 28%, and an operating margin of 29%. AUM increased by 13% to GBP110.6 billion. The company attributed its positive performance to increased interest rates, which supported investment returns on shareholder cash, stronger markets that increased average assets under management and administration (AuMA), improved net inflows, and effective cost management through its Simplification programme.
In a trading statement for the third quarter of 2024, Quilter reported record inflows of GBP1.4 billion, bringing AUM to GBP116.2 billion by the end of the quarter.
Technically, the share has broken out of an "island" formation and is now in a new upward trend. Quilter is considered a solid rand-hedge investment and a favorite among institutional investors. As the UK economy continues to recover, Quilter is well-positioned to benefit from that growth.
