Old Mutual Wealth has reported an adjusted operating profit of £227m for the year ended 31 December 2014, an increase of 5% compared to £217m a year earlier.
The rise in profit was driven by strong performance from OMGI and the UK Platform offset by the reduction in AOP from the divested European businesses and lower profits in the firm’s International business.
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The division’s gross sales for the year were up 24%, while net client cash flow (NCCF) was £3.7bn, up 61% from £2.3bn in 2013 and open book NCCF was £4.8bn.
Old Mutual Wealth’s funds under management reached £82.5bn at the end of 2014, up 5% compared with £78.5bn a year ago driven by good fund performance and strong NCCF, despite volatile market conditions.
In the UK, OMGI recorded NCCF of £2.5bn compared with £0.7bn in the year ago period. OMGI’s FUM at the end of the year was £21.0bn, up 31%, including £2.0bn of FUM from Cirilium.
FUM on the UK platform stood at £30.8bn, up 13% on the prior year which, along with flat costs contributed to the increase in operating profit to £19m from £13m last year. The platforms The UK Platform’s gross sales reached £5.1bn from £4.7bn I the prior year.
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By GlobalDataThe firm’s platform sales through Intrinsic restricted advisers totalled £178m, with £68m of NCCF.
International’s profits were down 24% to £37m compared to the previous year, due to foreign exchange movements restricting profits and other one off costs. International cross-border dropped 4% to £1.8bn for the year.
Old Mutual Wealth has completed the acquisition of Quilter Cheviot on 25 February 2015.
OM Asset Management (OMAM) division has reported a 32% increase in profits to $211m from $160m a year ago due to increases in management fees and some performance fees.
Group CEO Julian Roberts said: "Old Mutual in South Africa grew profits by 25%, Nedbank grew profits by 14% and collaboration amongst our South African business continues. In the Rest of Africa, we are seeing steady growth which we expect to accelerate following the acquisition of UAP and investment in ETI.
"Old Mutual Wealth has substantially completed its investment in building a modern UK retail investment company with its acquisition of Quilter Cheviot, in addition to Intrinsic earlier in the year. OMAM has had an exceptionally good year with profits up 32% and a successful listing on the New York Stock Exchange.
"Our focus for 2015 is on integrating the acquisitions, delivering the operational improvements and creating value from these investments," he added.
