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Old Mutual Wealth, comprising Skandia, Skandia International and Old Mutual Global Investors (OMGI), saw net client cash flow (NCCF) increase by 50% in the first half of the year to £1.2 billion (H1 2013: £0.8 billion). The increase demonstrates strong demand for Old Mutual Wealth’s investment solutions via its new Skandia WealthSelect offering, as well as funds offered by OMGI, in particular UK Alpha and Global Equity Absolute Return.

IFRS Adjusted Operating Profit (AOP), pre-tax, was £120 million for the first half of 2014, up by 11% compared to the prior year (H1 2013: £108 million). The strong NCCF during the period saw funds under management (FUM) increase to £80.3 billion (31 Dec 2013: £78.5 billion).

Paul Feeney, chief executive of Old Mutual Wealth, comments:

Paul Feeney“Our focus is on building investment solutions that meet different customer needs.  We believe that is what people need to help them secure their financial future and these results are a good endorsement of that strategy.  The launch of WealthSelect this year is an example of how we can use our platform and asset management expertise to build a service that gives advisers a range of managed portfolio solutions aligned to their clients’ needs.  WealthSelect has already taken over £200 million in new investment – a clear sign that advisers and their clients value the proposition.

“Old Mutual Global Investors is now widely recognised as a leading asset management business having received the prestigious accolade of the Global Group of the Year* just two years after we created the business.

“The acquisition of Intrinsic during the period was a significant milestone in our plans to become a leading investment solutions provider. Building the solutions is one thing but we need to make them more accessible to people and have a direct understanding of what they want. Intrinsic enables us to do that and is an important addition to our business.

“Preparations are well under way for us to start using the Old Mutual brand in the UK at the end of September and internationally at the beginning of next year. This marks a tipping point in our transition from primarily a platform provider to a broader investment solutions provider.”

Business updates:

Old Mutual Global Investors

Old Mutual Global Investors (OMGI) had a very strong first half of 2014, in which it was awarded ‘Global Group of the Year’ at the 2014 Fund Manager of the Year Awards*. OMGI’s FUM reached £17 billion at 30 June 2014, driven by a significant increase in NCCF from £0.2 billion in H1 2013 to £1.1 billion in H1 2014. Adjusted operating profit for OMGI was double the previous year at £16 million (H1 2013: £8 million).

UK platform

The Skandia UK platform saw strong gross sales of £2.5 billion, 11% above prior year (2013: £2.3 billion). This is a result of high demand for packaged investment solutions aligned with customer needs such as Spectrum and WealthSelect, and OMGI’s funds which are increasingly featuring in many advisers’ investment propositions.

The platform recorded a profit of £10 million in the first half of the year, up from £2 million during the same period last year, with FUM standing at £28.8 billion, an increase of 5% since the start of the year. NCCF was £0.9 billion, 31% lower than prior year (2013: £1.3 billion).

The proposed changes to the pension rules in the UK are a major boost for Skandia which is one of the leading providers of income drawdown in the UK.  It has seen queries into its pension transfer service double since the announcement and three quarters of advisers have reported an increase in pension or retirement income enquiries.


Sales for Skandia International, the cross-border business of Old Mutual Wealth, were 4% lower than the prior year at £892 million (H1 2013: £931 million). Sales in the UK, Latin America and South Africa were all higher than the same period last year. The Far East has seen lower sales during H1, but momentum is expected to improve over the second half of the year following the recent launch of the new high net worth life cover solution in Hong Kong and Singapore - the Silk Life Plan. Skandia International remains committed to expanding its reach into Africa via its Middle East office.  This will be supported by product and operational enhancements which should see sales effort across all the international regions strengthen further during the second part of the year.

Overall, Skandia International’s FUM increased by 1% to £15.1 billion (2013: £15 billion) and adjusted operating profit was £23 million, 26% down on 2013 (H1 2013: £31 million), impacted in part by the adverse foreign exchange movements against the dollar and euro which reduced earnings by approximately £5 million compared with H1 2013.

Europe and heritage

Sales in Old Mutual Wealth’s European open book delivered robust results with an increased profit of £14 million, 27% higher than prior period (2013: £11 million) driven by higher funds under management and increased efficiencies in Italy. Old Mutual Wealth also completed the sale of Skandia Poland and confirmed the sale of Skandia Germany and Skandia Austria during the period. Old Mutual Wealth’s heritage business, which includes legacy business in the UK, recorded an adjusted operating profit of £53 million, flat in comparison to 2013. 

*Old Mutual Global Investors was awarded Global Group of the Year at the 2014 Investment Week Fund Manager of the Year Awards. 

For more information contact

Tim Skelton-SmithOld Mutual Wealth02380 916 99807824 145 076
Amelie ShepherdOld Mutual Wealth02380 916 09107834 499 596

Notes to editors:

About Quilter plc:

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

Quilter plc oversees £118.1 billion in customer investments (as at 30 September 2018).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset 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; Quilter Private Client Advisers; discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

The Quilter plc businesses are being re-branded to Quilter over a period of approximately two years:

• The Multi-asset business is now Quilter Investors

• Intrinsic to Quilter Financial Planning

• The private client advisers business is now Quilter Private Client Advisers

• The UK Platform to Quilter Wealth Solutions

• The International business to Quilter International

• The Heritage life assurance business to Quilter Life Assurance

• Quilter Cheviot will retain its name

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.