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Old Mutual Wealth Sales and Funds under Management update Q3 2016

11/10/2016

Old Mutual Wealth’s multi-channel model of owning distribution, an investment platform, discretionary fund management and asset management contributed to the delivery of net client cash flows (‘NCCF’) of £0.9 billion in Q3 2016 (Q3 2015: £2.3 billion).  Q3 2015 was an exceptional quarter due to changes to the pension freedom legislation that were introduced, which drove increased levels of NCCF through the UK Platform.

Year-to-date NCCF was £4.1 billion compared to £4.6 billion for the same period in 2015, with the decrease primarily due to market weakness and continued uncertainty following the outcome of the European Union referendum in June.  Year-to-date gross sales increased by 9% to £16.7 billion (Q3 2015: £15.3 billion), primarily driven by strong flows into Old Mutual Global Investors. 

For the continued business, excluding Old Mutual Wealth Italy, year-to-date NCCF decreased by 5% to £3.9 billion, from £4.1 billion in the prior year and year-to-date gross sales increased by 12% to £16.0 billion (Q3 2015: £14.3 billion.)

Funds under management (‘FUM’) increased by 14% to £119 billion since the start of the year (Q4 2015: £104 billion), primarily driven by strong net flows and favourable market movements.  UK Platform FUM increased by 14% to £40 billion (Q4 2015: £35 billion), with year-to-date gross flows of £4.7 billion (Q3 2015: £4.6 billion) and year-to-date NCCF of £1.9 billion (Q3 2015: £2.0 billion).  Old Mutual Global Investors’ FUM increased by 16% to £29 billion (Q4 2015: £25 billion) and Quilter Cheviot’s FUM increased by 11% to £20 billion (Q4 2015: £18 billion).  

Paul FeeneyPaul Feeney, CEO of Old Mutual Wealth, comments: “We have continued to grow our business and our market share despite the challenging markets which have prevailed for much of 2016.  We expect markets to remain difficult for some time given the uncertain conditions surrounding the UK’s exit from the European Union.  We are seeing early signs that our customers are regaining confidence and returning back to risk assets, albeit tentatively.  However, we believe that our focus on staying close to our customers at all times will help us maintain our market leading position.” 

 

 

For more information contact

Vee MontebelloOld Mutual Wealth020 7778 955007872 665149vee.montebello@omwealth.com

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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