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Old Mutual Wealth reports further strong net client cash flow momentum and growth in funds under management

26/10/2017

Old Mutual Wealth Q3 2017 YTD

Paul Feeney, CEO of Old Mutual Wealth, commented:

Paul Feeney“Third quarter net client cash flow (NCCF) continued the very strong momentum seen in the first half, supported by good performances from each of our Invest and Grow businesses.  Year to date NCCF of £7.3 billion was 92% ahead of the comparable period in 2016. NCCF as a proportion of opening funds under management (excluding Heritage) on an annualised basis of 11% is well ahead of our 5% target. In particular, the continued robustness and year-on-year growth of our integrated flows demonstrates the strength and value of our business model.

“The growth in our funds under management of 14% is driven by positive net flows in the period of 7% and positive investment performance of 7%. This compares to an increase of 3% in the FTSE 100 over the same period, proving our continuing ability to attract, retain and manage funds for the benefit of our customers.

 “Third quarter NCCF of £2.4 billion compares very favourably against Q3 2016 (£0.8 billion) which was the weakest quarter of that year given the market uncertainty following the Brexit referendum.

“While market conditions have remained relatively buoyant so far in 2017, we anticipate continued uncertainties in equity, bond and currency markets in the medium term as the potential impacts of the UK’s exit from the EU evolve over the next two years.

“We continue to be encouraged by the opportunities ahead as we prepare for our planned listing in 2018 and we look forward to providing the market with further insight on our business and strategy at our Showcase event on 15 November.”

 

Selected additional data for Invest & Grow business for Q3 year to date2:

Invest & Grow business for Q3 year to date

Selected additional data for Invest & Grow business2 for Q3 standalone:

Invest & Grow business2 for Q3 standalone

[1] All reported numbers exclude Old Mutual Italy and the South African branches which are transferring to Old Mutual Emerging Markets and comparatives have been restated accordingly.

2 The Invest and Grow business excludes Heritage and all assets and flows are shown on a gross basis.

3 Eliminations exclude the double-count in relation to investments in OMGI single strategy funds via the WealthSelect multi-asset solutions, and two externally managed funds.  

For more information contact

Tim Skelton-SmithOld Mutual Wealth02380 916 99807824 145 076tim.skelton-smith@omwealth.com
Geoffrey Pelham-LaneCamarco020 3757 498507733 124 226geoffrey.pelham-lane@camarco.co.uk

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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