Old Mutual Wealth reported net cash flows of £900m in the third quarter of 2016, down 60% compared to £2.3bn a year earlier.
For the nine months to 30 September, net inflows stood at £4.1bn, compared to £4.6bn in the prior year. The company attributed the fall mainly to market weakness and uncertainty following the European Union referendum result in June.
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Year-to-date gross sales rose by 9% to £16.7bn, mainly due to strong flows into Old Mutual Global Investors.
Since the start of the year, the company’s funds under management increased 14% to £119bn, mainly driven by strong net flows and favourable market movements.
Old Mutual Global Investors’ FUM surged 16% to £29bn, while Quilter Cheviot’s FUM increased 11% to £20bn.
Old Mutual Wealth CEO Paul Feeney said: “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.
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By GlobalData“We are seeing early signs that our customers are regaining confidence and returning back to risk assets, albeit tentatively.”
Old Mutual is currently in the process of a managed separation ofits business into four entities, Old Mutual Wealth, Nedbank, Old Mutual Emerging Markets, and Old Mutual Asset Management (OMAM).
Reiterating its plan, announced earlier this year, parent Old Mutual said that the separation will ultimately deliver two entities, listed on both the London and Johannesburg stock exchanges.
“One entity will consist principally of the UK Old Mutual Wealth operations, with the primary means of achieving this being through a demerger, and the other will consist principally of the Emerging Markets operations through the creation of a new South African holding company,” Old Mutual said.
The company also said that it would continue to reduce its 66% stake in its US unit OMAM.
As part of the managed separation, the group will also close its London head office. The winding down of the office would cost between £50-£65m, the compnay said.
