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There is much history behind the Quilter Cheviot name and business but, over fifty years of trading, the principles of building a strong relationship with clients and their families have remained the same. Emily Moore reports
FROM Roger Mortimer, Sheppards and Chase, James Capel and Allied Provincial Stockbrokers to Quilter Goodison, Morgan Stanley Quilter and Citi Quilter, there have been many names above the door of the firm which is now established as Quilter Cheviot.
But, while the mergers, acquisitions and sales of the Quilter business over the years may have kept the signwriters and stationers busy, they did not alter the focus and ethos of the company, which this year celebrates its 50th anniversary in Jersey.
‘While we have undergone multiple name changes over the years, many of our clients have remained with us throughout the decades and we also have several long-serving members of staff, which provides the stability and continuity which is so important to any business,’ said Quilter Cheviot head of international and Jersey office Tim Childe.
Today, Quilter Cheviot forms part of the high-net-worth division of Quilter Plc, an international wealth business listed on the FTSE 250, responsible for assets in excess of £100 billion.
But, as founding director and former chief executive and chairman of the Jersey office Alan Corbin explains, the business started somewhat more modestly.
‘We began in 1973 as Roger Mortimer with just six members of staff, working from a very small office opposite La Capannina Restaurant,’ he smiled. ‘I remember going to see Colin Powell, who was an economic adviser at the time and one of the architects of the Island’s finance industry. He recognised my “long association” with the Island and said: “Alan, I can give you two years to start your business.” I said: “No, just give me two minutes.” That was the beginning of the Quilter story.’
And it is a story with many chapters. Not only was Quilter acquired by a range of firms over the first few decades of its existence but, following the global financial crisis of 2008/09, it became subject to a management buyout.
‘The crisis put a degree of pressure on the banking sector, resulting in considerable consolidation within the industry,’ reflected Mr Childe. ‘At that point, Quilter was part of Smith Barney, which was owned by Citi Group. Smith Barney was then acquired by Morgan Stanley – a former owner of Quilter – but this time Quilter’s association with Morgan Stanley was short-lived as approval was given for a management buyout.
‘The ultimate aim of the buyout was to build the business and list it on the stock markets so, with the capital support of Bridgepoint, Quilter bought Cheviot Asset Management, which explains why the firm is now called Quilter Cheviot. The listing took a little longer to come to fruition though, as Quilter Cheviot was then acquired by Old Mutual Plc. When that business separated into different divisions, and Old Mutual Wealth sought its own listing, we could no longer use the Old Mutual name and so gained approval to use the Quilter name.’
And it is not only the names of the business which have changed over the years. Although the team has, as Mr Childe says, ‘simply carried on doing what we’ve always done, looking after our clients and building those relationships’, the firm’s footprint has expanded considerably.
‘The ethos is unchanged with a very personalised approach across the business,’ he said. ‘Over the years, though, we have branched out internationally, opening an office in Dubai just over seven years ago and securing a licence in 2007 to carry out cross-border investment management for South African clients and intermediaries.’
Of course, while Quilter Cheviot has developed in line with a constantly evolving international landscape, so have the expectations and demands of both clients and regulators.
‘When we first set up, onboarding clients used to involve filling out one piece of paper with the person’s name, address and bank details,’ recalled Mr Corbin. ‘Without the internet, trading terms were also very different. Trading used to take place within 14 days, with no obligation to pay or receive any money until a week after the fortnight on which the accounts were based. This was later cut down to four days and now it happens instantly.’
Undoubtedly, technology has played a significant role in increasing the pace at which business is completed. It has also, in many ways, contributed to the need for more stringent regulation.
‘The markets have become both more sophisticated and dangerous in recent years,’ said Mr Childe. ‘As a result, the regulatory regime has had to tighten up to maintain a sound infrastructure and to protect clients. As businesses have become international, with money coming in from all over the world, that legislation and protection is critical not just for individual clients and firms, but for Jersey’s reputation as an international finance centre.’
The importance of safeguarding that reputation cannot, says Mr Childe, be underestimated and explains why it is not only clients with whom Quilter Cheviot builds strong relationships.
‘We have a healthy respect for other firms operating within our space and work closely with them to share best practice,’ he explained. ‘That “stronger together” mentality is prevalent across the industry. While we may be competing for business, having a high standard across the Island is hugely important both for clients and for Jersey as a finance centre.’
With consistently high service levels across the sector, Mr Childe and Mr Corbin agree that personalities and relationships are key to securing business.
‘I remember visiting a potential client in Guernsey on one occasion and securing the contract purely because of the relationship I developed with them,’ reflected Mr Corbin.
‘The principle is the same across the industry,’ agreed Mr Childe. ‘Because we all offer very high professional standards, it is almost a given that the service given by any firm will be of an exacting quality. Therefore, the question the client is asking is whether the person can relate to their family. There is a huge emphasis on the relationship side, not just between the investment manager and the client but with the client’s family. We are now working with the third generation of many families and looking after the grandchildren of many of those original settlements.’
And, with younger generations joining the firm, both as clients and as employees, Mr Childe says that the focus on workplace values and responsible investing is now more important than ever.
‘We have had to adapt our practices and become more flexible,’ he said. ‘Potential recruits, particularly among the younger generations, are not just looking at the company offering. They are looking at the culture. They want to be assured that the company is aware of global issues, and is applying responsible investment practices, rather than focusing purely on profit and loss.’
Supporting this approach is Quilter’s commitment to research.
‘Quilter Plc has one of the largest research teams in the discretionary industry, so we have access to 22 analysts, each of whom is dedicated to a particular sector or asset class,’ said Mr Childe. ‘This gives us a significant resource on which to build our strategies and enables us to provide bespoke and exacting advice to each client.
‘That is fundamental to our approach because, while discipline is important, it is just as important that investment managers can provide a tailored service to reflect the different objectives, risk profiles and life events that each client has.’
The company, which is a signatory to the UN principles for responsible investment, also has a large in-house team focused on ESG frameworks and policies.
‘Not only do we engage with the companies in which we invest but we screen out firms which engage in certain practices,’ Mr Childe explained. ‘In addition to our own climate assets funds, run from London, we have a number of environmental funds within our research universe in which we invest.
‘That responsible approach also chimes with our commitment to the community. Not only was Quilter Cheviot a launch sponsor of Durrell’s Rewild Carbon initiative but the firm also works with a number of local charities such as Healing Waves, Grow Jersey and Mind. We also undertake a lot of work with schools to raise awareness of careers within the industry and to support students as they begin to think about that transition from education to employment.’
And while Mr Childe predicts that some of those job roles will evolve over the next few years, he has no doubt that the key ethos which has held Quilter Cheviot in good stead over the past 50 years will remain.
‘We know that we will have to adapt our services and systems, and to invest in our people and technology to ensure that we remain relevant and engaging,’ he acknowledged. ‘Technology is moving so fast and there are questions around the challenges that AI, for example, will bring to businesses like ours.
‘The next generation is also very important, and we have to listen to the market and the intermediaries with whom we partner to identify new opportunities and broaden our services accordingly.
‘We know that there will be challenges ahead but that is nothing new. We’ve been through the market turbulence of the 1980s, wars, a currency crisis, Brexit and a global pandemic and survived. Black-swan events will come along and create unique challenges. We are used to those. I remember shortly after I joined the firm, in 1991, there was an IRA bomb blast in London, and our building was badly damaged, although fortunately none of our staff were injured.
‘The blast took place on a Friday evening, we moved operations over the weekend and, on the Monday morning, we placed an advert in the media saying: “On Friday evening, our offices were badly damaged in a bomb blast. This morning, we are up and running again. We don’t make a drama out of a crisis.”
‘That may be an extreme example but there will always be something around the corner and that is where the resilience of our people and our systems comes in so that we can always protect, and provide a service to, our clients.
‘And that is the element of the business which will not change. That personal interaction, the smiles, the handshakes and the face-to-face dialogue which cements those relationships will always remain at the heart of our business.’
