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15/04/2014

Analysis by Skandia, part of Old Mutual Wealth, suggests that by the end of 2016 over £141 billion* could be placed in outsourced portfolio management services by financial advisers in the UK market.

Two thirds (66%) of financial advisers questioned by Skandia said they expect to use an outsourced portfolio management service in the next few years, with the average adviser expecting to use these services for nearly half (46%) of their clients.  Based on the predicted size of the adviser market at that time this would equate to assets in outsourced portfolio management solutions of £141 billion. This compares to around £52 billion today, an increase of over 170%. 

Further research** suggests that the type of outsourced portfolio management services most frequently used by financial advisers are Discretionary Fund Management, multi-manager funds, multi-asset funds and managed portfolio services run by a third party provider.

Nearly 63% of the financial advisers surveyed who outsource their investments, stated that they did so because it allowed them to leverage on expertise outside of their own businesses. This correlates with the 49% of advisers who believe the investment expertise of a third party provider is the most important factor when considering an outsourced solution. A further 54% stated that reducing risk to their business was another key benefit for outsourcing.

Alistair Campbell, head of investment marketing at Skandia, comments:Alistair Campbell

“With the emphasis very much on improving customer outcomes and managing business risk, constructing bespoke portfolios for every client is no longer an option for many advisers. By using an outsourced investment solution, advisers recognise they can engage the skills of investment experts to help reduce the investment risk and administration burden to their business. This in turn allows them to spend more time on providing long term financial planning to their clients.”

*based on research conducted in November 2013, surveying over 200 financial advisers

**research conducted in March 2014, surveying over 1,000 financial advisers

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.

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