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11/07/2014

The Q2 net sales data from the Skandia Investment Solutions platform reinforces the market wide spike in property fund sales, suggesting investors are unsure about some asset classes and are looking elsewhere to balance their portfolios. With poor cash rates, low bond yields and some equity markets hitting at all-time highs, investors are turning to property as their favourite investment.

The Q2 net sales figures shows the extent of the recent surge in property, with sales more than double in the last quarter, going from 13% of net sales in Q1 to 27.8% of net sales in Q2. It is now the top selling sector, marginally beating the Multi-asset sector which accounted for 27.5% of net sales.

The UK economy is generally believed to be in recovery which creates a positive environment for commercial property. Given the current position with both equity and bond markets, the low equity beta and increasingly stable yield from bricks and mortar is likely to be attractive to investors as a good alternative to hold within a portfolio, and could help reduce overall portfolio risk.

Despite the fall in bond yields, sales into the UK fixed interest sector have picked up. Again this could be a sign that investors are not sure where to turn, and are looking for a balance of alternative investments.

Net sales figures Q2 2013 to Q2 2014
Net sales figures Q2 2013 to Q2 2014

Dean Bowden, head of investment solutions, comments:

“We are sensing some uncertainty from investors regarding which way the markets will turn. Some sectors have clearly fallen out of favour, such as the Global Specialist. It is currently difficult to predict where investors will turn for long-term growth. The sudden move to property reflects this uncertainty, with investors looking for alternative solutions to diversify their portfolios.”

For more information contact

Tim Skelton-SmithOld Mutual Wealth02380 916 99807824 145 076

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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