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Demand for financial advice to increase following Budget proposals.

Old Mutual Wealth, comprising Skandia and Old Mutual Global Investors, delivered a strong performance over the first quarter of 2014 and believes the Budget proposals will be a further boost for financial advisers.  Net client cash flow (NCCF) more than doubled to £1.1 billion (Q1 2013: £0.4 billion) as a result of strong sales across asset management and the UK platform.  Year-on-year gross sales were up 28% at £3.9 billion (Q1 2013: £3.1 billion) and assets under management finished the period at a record high of £80.2 billion (31st December 2013: £78.5 billion).

Old Mutual Wealth announced some significant additions to its customer proposition during the period, most notably the launch of its WealthSelect portfolio management solutions, the acquisition of the Intrinsic network of financial advisers and the acquisition of Henderson’s 50% shareholding in the Cirilium investment proposition.  These additions give Old Mutual Wealth an integrated customer proposition covering advice, actively managed portfolios and tax efficient products. 

Old Mutual Global Investors (OMGI) saw gross sales increase 66% to £2.5 billion (Q1 2013: £1.5 billion). NCCF for OMGI increased to £1.1 billion against £0.1 billion in the comparative period, with NCCF from UK third party distribution channels increasing significantly to £0.7 billion (Q1 2013: £0.1 billion). OMGI’s sales were strong across the majority of asset classes, facilitated by its strengthening brand presence and strong investment performance – 44% of the assets managed by OMGI have seen top quartile performance over three years and 72% have outperformed their benchmark over the same period.

During the period OMGI was the top selling fund group in the UK by net retail sales (£0.9 billion) and number five by gross retail sales (£1.6 billion) according to the Pridham report.  This strong sales performance saw overall funds under management increase 9% since the beginning of the year.

The Skandia UK platform gross sales increased by 32% to £1.3 billion (2013: £0.9 billion) and net client cash flow remained consistent at £0.5 billion compared with the same period last year. Sales momentum in Q1 was boosted by the launch of Skandia’s new WealthSelect proposition which meets the increased demand for outsourced portfolio management solutions from financial advisers.  Funds under management ended the period at £28.1 billion, up 3% since the beginning of the year.

Gross sales for the Skandia International cross-border business were down 5% year-on-year at £427 million (2013: £449 million). Strong sales growth in Europe and in South Africa has been offset by a traditionally slower first quarter in Hong Kong and Singapore. Despite a slow start earlier in the period, sales momentum in Latin America and in the UK strengthened during March.  International funds under management stand at £15.1 billion, up from £15.0 billion at 31 December 2013.

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

Paul Feeney“The 2014 Budget proposals will be a major boost for financial advisers.  Customers have always needed advice but the greater freedom proposed by the Chancellor will increase this need further.  And it is full advice they need, guidance will not go far enough for customers.  They will need tailored, individual advice from a fully qualified and professional financial adviser.

“We are building a customer proposition that will deliver this advice along with actively managed portfolios and tax efficient products, all at a competitive cost.  We are taking high quality wealth management services and making them available to all retail investors through our platform where they can view their investments at any time via our new online customer centre. We are trying to make wealth management less daunting and more accessible to customers and we think that will encourage them to save for their futures.” 

For more information contact

Tim Skelton-SmithOld Mutual Wealth02380 916 99807824 145

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.