Old Mutual South Africa’s wealth management business, which combines seven of its business units into one division has started operating in August 2013 under the name, Old Mutual Wealth.
Old Mutual Wealth has developed an advice-led approach, together with effective implementation structures that are future fit to comply with anticipated regulatory and consumer trends.
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The new business has moved away from the group’s traditional product-and distribution-focused approach to concentrate more on clients’ needs, said the unit’s CEO, Andrew Bradley.
The new unit has assets under management of slightly more than ZAR200 billion and has 220,000 clients.
Bradley said: "The need for lifestyle-centric financial advice becomes more prominent due to the shift in global regulatory trends in consumer protection, advice, administration and fee structures.
"Old Mutual Wealth will make use of an advice-led, meaningful approach to client’s personal needs and investment portfolios. This will include a focus on integrated wealth planning and goal-based planning philosophies to assist clients achieve their desired lifestyle financial goals.
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By GlobalData"A key competitive advantage of Old Mutual Wealth is its support infrastructure and services to financial planners. This support will ensure that planners are able to deliver the appropriate level of guidance and value to their clients.
"This new Old Mutual business will empower and educate clients through financial planners by offering a full suite of industry-leading services and strategies, backed by global expertise and research," added Bradley.
The seven established businesses include Acsis, Fairbairn Capital, SYm|mETRY Multi-Manager, Old Mutual Unit Trusts (OMUT), Old Mutual International (OMI), Old Mutual Actuaries and Consultants (OMAC), and Celestis.
The new unit will draw on the advice philosophy of Acsis, technology from Fairbairn, access to the international platform from OMI, investment consulting expertise from OMAC and training material for financial advisors from celesis.
OMUT will bring a licence to pool assets in unit trusts to the party, and offers access to Old Mutual Investment Group.
It was expected to take two years to complete the integration into one business unit, which will target clients with ZAR5 million or more to invest.
The initial cost of putting a client on the new platform is ZAR570 with a monthly administration fee starting at ZAR100 and capped at ZAR500.
Bradley said: "Fairheads Trust Company will support the development of a fully-fledged capability offering at Old Mutual Wealth by offering the full spectrum of fiduciary services, estate planning and administration, and financial and investment advice.
"By closing capability gaps, we can offer clients solutions that are holistic, integrated and comprehensive," added Bradley.
