Share

28/02/2014

Old Mutual Wealth, comprising Skandia and Old Mutual Global Investors, today announces the acquisition of Intrinsic, the UK’s largest network of restricted and independent financial advisers. The acquisition is an important step in the company’s strategy of creating the UK’s leading retail investment business, improving access to wealth management services for customers across the UK.

The transaction brings together Intrinsic’s network of 3,000 independent and restricted advisers with Old Mutual Wealth’s leading investment platform and asset management solutions. Customers can expect an aligned proposition that uses the combined scale and buying power of the group to deliver an integrated service and excellent value.

Old Mutual Wealth, through Skandia, believes strongly in the importance of individual financial advice in helping deliver secure financial futures for all customers.  The purchase of Intrinsic reinforces this commitment to the advice channel.

Through this transaction Intrinsic secures the support of Old Mutual Group, a FTSE 100 company with over 160 years of experience in supporting distribution. Intrinsic’s existing management structures and business model will remain, and Old Mutual Wealth’s platform, protection and investment solutions will be added to the panels for its restricted advice offer, enhancing the existing client proposition.

The acquisition is subject to regulatory approval.

Paul Feeney, CEO of Old Mutual Wealth, comments:

“Wealth management is not just for the wealthy. Most people Paul Feeneyneed high quality individual advice to help them secure their financial future, to achieve their goals and look after their families. We believe passionately in this and want to improve access to wealth management services for people right across the UK.  With one in ten advisers in the UK being part of Intrinsic we will be ideally positioned to facilitate that.  Intrinsic is a high quality business with high quality people and this acquisition is a sign of our commitment to the financial advice industry.”

Richard Freeman, CEO of Intrinsic, comments:

“Ownership by Old Mutual Wealth will bring a host of benefits to our customers and to our business. It will deliver a first-class proposition with the investment platform, investment solution and advice relationship fully aligned in a way that provides real value for money. In addition, the support of a single, stable shareholder with Old Mutual’s financial strength and global experience in advice and distribution will further strengthen the business and deliver long-term security for our customers.”

Immediate impact of the acquisition

Intrinsic advisers

  • Intrinsic has approximately 3,000 financial advisers who operate either on an independent or restricted basis. Intrinsic’s business model will remain and will continue to support both independent and restricted advisers.
  • Intrinsic will remain distinct within Old Mutual Wealth, with its own existing brand and management team. The existing Intrinsic teams will continue to run the business on a day-to-day basis.
  • Skandia’s protection products will be added to Intrinsic’s panel for its Mortgage & Protection advisers.
  • Intrinsic’s restricted advice proposition will remain broad-based in line with client needs and the Skandia platform will be added to Intrinsic’s platform panel. 
  • Intrinsic’s Cirilium asset management solution will continue to be part of its investment proposition. Cirilium is managed by Henderson, which is a strategic partner of Old Mutual Wealth.
  • Old Mutual Wealth will work with Intrinsic to further develop core investment propositions that meet the needs of its customers, utilising Old Mutual Global Investors’ asset management strength.

Wider financial adviser community

  • Old Mutual Wealth will be significantly expanding its adviser servicing teams to support Intrinsic advisers. Existing support and service will not be diverted away from existing advisers that do business with Skandia. 
  • Old Mutual Wealth will have clear and defined processes in place for ensuring confidentiality for customers that are advised by external advisers.
  • Old Mutual Wealth remains committed to servicing the wider financial advice market and is investing significantly in the products and services it offers all financial advisers. The recent launch of its WealthSelect proposition and the significant investment it is making in its platform through its arrangement with IFDS is evidence of this.

Quotes from previous shareholders of Intrinsic:

Andy Briggs, Group Chief Executive, Friends Life:

“As a founder shareholder of Intrinsic, it has been a real pleasure for Friends Life to support the company as it has grown rapidly over the last eight years to become a major player in the distribution marketplace. Intrinsic is a business based on experienced leadership and real customer focus. The transaction is clearly a positive step for Intrinsic advisers and their clients, and we look forward to continuing our strong partnership in the years ahead in helping customers address their protection needs."

Adrian Grace, CEO, Aegon:

“Aegon have worked closely with Intrinsic since it started trading in 2006, and became a shareholder last year as part of the Positive Solutions acquisition. We believed then, and still do, that Intrinsic genuinely supports its advisers and puts the customer at the core of everything it does, and this transaction can only strengthen that position. From our own perspective, the Aegon ARC platform has been hugely popular with Intrinsic advisers, and we are excited to remain part of Intrinsic's platform panel that is based wholly around client need. We wish the combined businesses, the advisers and clients, every success for the future."

For more information contact

Tim Skelton-SmithOld Mutual Wealth02380 916 99807824 145 076tim.skelton-smith@omwealth.com

Notes to editors:

Quilter is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

On a ‘go forward basis’, Quilter oversees £ 111.6 billion in customer investments (as at 31 March 2018).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset and single strategy investment solutions; and discretionary fund management.

The business is comprised of two segments: Wealth Platforms and Advice and Wealth Management.

Wealth Platforms includes the Old Mutual Wealth UK Platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.

Advice and Wealth Management encompasses the financial planning network, Intrinsic; Old Mutual Wealth Private Client Advisers; discretionary fund management business, Quilter Cheviot; and Old Mutual Wealth’s multi-asset investment solutions business.

The Quilter businesses will be re-branded to Quilter over a period of approximately two years following separation from Old Mutual:

  • Intrinsic to Quilter Financial Planning
  • Private Client Advisers to Quilter Private Client Advisers
  • The Multi-Asset business to Quilter Investors
  • The UK Platform to Quilter Wealth Solutions
  • The International business to become Quilter International
  • The Heritage life assurance business to Quilter Life Assurance
  • Quilter Cheviot will retain its name.

On 19 December 2017, Old Mutual Wealth announced that it has agreed to sell its Single Strategy asset management business to the Single Strategy Management team and funds managed by TA Associates. The proposed transaction is subject to customary closing conditions, including regulatory approvals. 

Quilter is part of Old Mutual plc, a FTSE 100 group that provides investment, savings, insurance and banking. For the year ended 31 December 2017, Old Mutual reported an adjusted operating profit before tax of £2.0 billion. For further information on Old Mutual plc and the underlying businesses, please visit the corporate website at www.oldmutualplc.com.

NOT FOR DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN, OR ANY OTHER JURISDICTION IN WHICH THE DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL.

These materials are not an offer to sell, or a solicitation of an offer to purchase, securities in the United States. The securities to which these materials relate have not been registered under the US Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. There will be no public offering of the securities in the United States.

These materials do not constitute or form a part of any offer or solicitation or advertisement to purchase and/or subscribe for Securities in South Africa, including an offer to the public for the sale of, or subscription for, or the solicitation or advertisement of an offer to buy and/or subscribe for, shares as defined in the South African Companies Act, No. 71 of 2008 (as amended) or otherwise (the “Act”) and will not be distributed to any person in South Africa in any manner that could be construed as an offer to the public in terms of the Act. These materials do not constitute a prospectus registered and/or issued in terms of the Act. Nothing in these materials should be viewed, or construed, as “advice”, as that term is used in the South African Financial Markets Act, No. 19 of 2012, as amended, and/or Financial Advisory and Intermediary Services Act, No. 37 of 2002, as amended.

These materials are distributed in any member state of the European Economic Area which applies Directive 2003/71/EC (such Directive, together with any amendments thereto including Directive 2010/73/EU, the “Prospectus Directive”) only to those persons who are qualified investors for the purposes of the Prospectus Directive in such member state, and such other persons as these materials may be addressed to on legal grounds, and no person that is not a relevant person or qualified investor may act or rely on this document or any of its contents.

This document is being distributed to and is only directed at: (i) persons who are outside the United Kingdom; or (ii) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 as amended (the “Order”); or (iii) high net worth companies, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons in (i), (ii) and (iii) above together being referred to as “relevant persons”). Any invitation, offer or agreement to subscribe, purchase or otherwise acquire securities will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents.

This press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.