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WealthSelect hits £2 billion milestone

27/04/2016

Old Mutual Wealth is today announcing WealthSelect, the managed portfolio service launched in 2014, has surpassed £2 billion in assets under management (AUM).

Strong sales combined with positive investment performance saw WealthSelect surpass the £2 billion AUM milestone shortly after the two-year anniversary of its February 2014 launch.

Distribution

Pension investments have been a significant driver of growth, with 48% of all WealthSelect assets held in a Collective Retirement Account on the Old Mutual Wealth platform.

Just under 30% is held in ISAs, with the remainder invested through Collective Investment Accounts and Collective Investment Bonds.

Over 1,000 advisers have recommended the portfolios, with over 28,000 policies held by more than 21,000 clients.

Investment

WealthSelect offers a range of managed portfolios tailored to the needs of a variety of risk profiles. The proposition offers portfolios of actively managed funds, which account for 78% of all assets. The remaining investments are held in passive-blend portfolios that include lower-cost index funds.

Funds within the portfolios are run as sub-advised mandates, with Old Mutual Wealth using its distribution capabilities to secure discounted terms from investment managers. The average WealthSelect fund has an annual management charge (AMC) of 0.52%, with funds managed across a range of 13 different investment managers.

Relative to their peer group, three quarters (74%) of the funds are either first or second quartile since launch.

The Old Mutual Wealth Investment Division multi-asset unit is responsible for the ongoing management of the portfolios, delivering strong investment performance since launch:

 

Portfolio

Since launch (%)

CRA 3 Active

10.14

CRA 4 Active

11.81

CRA 5 Active

13.06

CRA 6 Active

13.45

CRA 7 Active

13.99

CRA 8 Active

14.12

CRA 9 Active

13.62

CRA 10 Active

16.80

 

Old Mutual Wealth investment platforms CEO Steven Levin (right) says:

“We’re extremely pleased to reach the £2 billion milestone in just over two years.

“Positive growth in AUM shows the proposition is gaining substantial traction with advisers and their clients looking for a cost-effective investment solution offering reliable performance within clearly defined risk parameters.

“Reaching this milestone is testament to the investment expertise of Old Mutual Global Investors and our leading fund group partners within WealthSelect, combined with the scale and distribution capability of Old Mutual Wealth.”

Old Mutual Wealth Investment Division portfolio manager Stuart Clark says:

“Despite often challenging market conditions, the WealthSelect portfolios have consistently delivered positive returns for clients and we are delighted by the fantastic support we've received from financial advisers.

“We will continue to work with world class fund managers and utilise the skills of the Old Mutual Wealth Investment Division team to develop the portfolios in line with clients evolving investment needs.”

For more information contact:

Tim Skelton-Smith 
Lead Corporate Communications Manager |  Old Mutual Wealth 

M: 07824 145076

T: 02380 916998 | Ext: 21998
E: tim.skelton-smith@omwealth.com | W: www.oldmutualwealth.co.uk

@sketim

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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These materials are not an offer to sell, or a solicitation of an offer to purchase, securities in the United States. The securities to which these materials relate have not been registered under the US Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. There will be no public offering of the securities in the United States.

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