View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
  2. Company news
March 11, 2016updated 04 Apr 2017 1:29pm

Old Mutual Wealth 2015 adjusted operating profit jumps 35%; to split into four units

Old Mutual Wealth has posted an adjusted operating profit (AOP) of £307m for the full year of 2015, up 35% from £227m a year ago, largely driven by revenue growth in core businesses.

By Verdict Staff

Old Mutual Wealth has posted an adjusted operating profit (AOP) of £307m for the full year of 2015, up 35% from £227m a year ago, largely driven by revenue growth in core businesses.

The operating margin for Old Mutual Wealth rose over the year to 40% from 36% in 2014.

The unit’s year-to-date funds under management (FUM) stood at £104.4bn, up 27% compared to £82.5bn a year ago.

Net client cash flow (NCCF) at the unit rose by 86% in 2015 to £6.9bn from £3.7bn a year ago.

Gross sales in 2015 were up 30% at £20.8bn compared to £15.9bn a year ago following strong sales into Old Mutual Global Investors (OMGI), UK Platform and Old Mutual International.

OMGI has more than doubled its profit to £71M and the UK Platform’s AOP grew by 74% to £33m in 2015.

OMGI has recorded NCCF of £3.5bn in 2015, up 40% from the year ago period, with strong net inflows in key funds: £1.6bn into global equity absolute return, £1.0bn into Cirilium and £0.7bn into UK Alpha.

The FUM at OMGI grew 18% to £24.7bn and Quilter Cheviot’s FUM was £17.8bn at the end of 2015, resulting in 41% of total Old Mutual Wealth FUM being managed by our asset and investment management businesses.

The UK Platform had NCCF of £2.7bn for 2015, 35% up compared to the prior year driven primarily by net pension sales, while Old Mutual International NCCF was £0.7bn compared to £0.3bn in 2014.

Overall, the group has posted a pre-tax adjusted operating profit (AOP) of £1.7bn up 11% in constant currency, up 4% in reported currency.

Meantime, Old Mutual is planning to split itself into four separate companies following the outcome of a strategic review. The four companies include Old Mutual Emerging Markets, Old Mutual Wealth, Nedbank Group and OM Asset Management.

The group said that the separation of its four main units is slated to complete by the end of 2018.

Old Mutual Group CEO Bruce Hemphill said: "We have four strong businesses that can reach their full potential by freeing them from the costs and constraints of the Group. As you can see from our results, these businesses are performing strongly, have excellent competitive positions in sizeable markets and the underlying growth potential to flourish independently.

"Our new strategy will allow each business to have simpler access to capital markets to fund its growth more easily and be valued more appropriately, with more straight forward regulatory arrangements. We are announcing today a strategy that will allow us to release the potential within the Group for the benefit of all its stakeholders for many years to come."

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Wednesday. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Private Banker International