Reports

Old Mutual Wealth Reports YoY Dip In Client Cash Flows

Amisha Mehta Deputy Editor London 12 October 2016

Old Mutual Wealth Reports YoY Dip In Client Cash Flows

The UK wealth manager expects the "difficult" post-Brexit market conditions to remain for a while.

Old Mutual Wealth generated £900 million ($1.1 billion) in net client cash flows in the third quarter of 2016, down from £2.3 billion a year earlier.

Year-to-date, net client cash flows totalled £4.1 billion compared to £4.6 billion for the same period in 2015. This decline was attributed largely to market weakness and continued uncertainty following the Brexit vote. Gross sales, meanwhile, were up 9 per cent at £16.7 billion, driven by strong flows into Old Mutual Global Investors, which logged a 16 per cent rise in funds under management since the start of the year to £29 billion. Quilter Cheviot’s fund pool grew by 11 per cent to £20 billion.

Old Mutual Wealth’s total funds under management jumped 14 per cent from the start of the year to £119 billion.

Excluding Old Mutual Wealth Italy, which is in the process of being sold to Cinven-owned ERGO Italia, year-to-date client cash flows fell 5 per cent to £3.9 billion, versus the same period of last year, while gross sales increased 12 per cent to £16 billion.

“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,” said Paul Feeney, chief executive of Old Mutual Wealth.  

“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.”

In August, Old Mutual Wealth Private Client Advisers agreed to acquire West Yorkshire-based financial planning firm Beaumont Robinson. The deal will bring over 850 clients and around £250 million in assets under advice to the business.

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