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Quilter Cheviot eyes profit from Dubai office within 2-3 years

By David French

DUBAI, April 25 (Reuters) - Quilter Cheviot expects its Dubai office to turn a profit within two to three years after opening its first base outside the United Kingdom and Ireland (Other OTC: IRLD - news) in the Gulf emirate, the chief executive of the investment manager said on Monday.

The firm, bought by Old Mutual (Other OTC: ODMTY - news) in late-2014, is aiming to diversify its business with the representative office and exploit a gap in the Middle Eastern market for bespoke investing.

"This is the first opportunity to expand internationally but the principles are similar to opening an office in the UK, in that I would expect it to become profitable within a two-to-three-year period," David Loudon told Reuters.

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He added that, should all go successfully, it could be the springboard for expansion into other countries. He declined to give further details.

The office, in Dubai's financial free zone, would mainly focus on business within the emirate. It (Other OTC: ITGL - news) would target local independent financial advisers, accountancy firms, trusts and family offices, among others, to sell its products, according to Tim Childe, head of international at Quilter Cheviot.

Loudon said he is not concerned about the impact of lower oil prices on the prospects for business in a region associated with hydrocarbon wealth, because the volatility in markets created as a result would prompt intermediaries and their clients to seek out specialist investment advice.

With (Other OTC: WWTH - news) 17.8 billion pounds ($25.8 billion) of assets under management as of end-2015, the firm hoped the Dubai office would make a "meaningful" contribution in time, Loudon said without providing a specific target.

Changes happening within Old Mutual would not affect its business, Loudon added, declining to comment further.

Old Mutual Wealth, within which Quilter Cheviot sits, could be listed or sold under plans by the Anglo-South African financial services group to split itself into four parts, it said last month. ($1 = 0.6903 pounds) (Editing by Ruth Pitchford)