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27/04

WealthSelect hits £2 billion milestone

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:

Old Mutual Wealth

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

It has an adviser and customer offering spanning:

  • Financial advice delivered by the Intrinsic network in the UK and AAM Advisory in Singapore
  • Platform based wealth management and protection products delivered by Old Mutual Wealth in the UK & Italy* and Old Mutual International globally
  • Asset management solutions delivered by Old Mutual Global Investors
  • Discretionary investment management delivered by Quilter Cheviot.

Old Mutual Wealth oversees £119 billion in customer investments (as at 30 September 2016).

Old Mutual Wealth is part of Old Mutual plc a FTSE 100 group that provides life assurance, asset management, banking and general insurance. Old Mutual is trusted by more than 19.4 million customers across the world and has a total of £342.7 billion assets under management (as at 30 June 2016).

*Old Mutual Wealth announced the sale of Old Mutual Wealth Italy to Ergo Italia on 9 August 2016. The transaction is pending completion.

This press release is for journalists only and should not be relied upon by financial advisers or customers. Investments may fall or rise in value and investors may not get back what they put in.