Intrinsic and Quilter Cheviot bolster strong Old Mutual Wealth Q3 growth

Old Mutual Wealth has posted strong net cash flows as part of its third quarter results thanks in part to strong growth within its advisory and discretionary businesses Intrinsic and Quilter Cheviot.

About £2.8bn of the total inflows came from Intrinsic, the financial adviser network that was bought out by Old Mutual Wealth in 2014.

Old Mutual Wealth’s net cash flow almost doubled at 92% with strong performance by the Intrinsic network in the UK and AAM Advisory in Singapore and the company’s discretionary investment management Quilter Cheviot.

Funds under management rose 14%, year to date, with the firm’s platform based wealth management and protection products delivered by Old Mutual Wealth in the UK and Old Mutual International globally and asset management solutions delivered by Old Mutual Global Investors, on the rise.

Net client cash flow (NCCF) was £7.3bn (US$9.64bn) for the year so far according to Old Mutual Wealth’s third quarter results, up from the £3.8bn reported at the same point in 2016.

It describes NCCF as the difference between money received from customers (eg premiums, deposits and investments) and money given back to customers (eg claims, surrenders, maturities).

Paul Feeney, pictured left, chief executive of Old Mutual Wealth, said: “NCCF as a proportion of opening funds under management, excluding Heritage, on an annualised basis of 11% is well ahead of our 5% target.

“In particular, the continued robustness and year-on-year growth of our integrated flows demonstrates the strength and value of our business model.”

Quilter Cheviot rise

Funds under management at Quilter Cheviot, rose £2.3bn on the previous year with net flows of £1bn and market movements increasing the value by £1.3bn.

Total funds under management across the group up stood at £131.3bn at the end of September.

Within Old Mutual Global Investors (OMGI), single strategy funds achieved the biggest net flows.

“While market conditions have remained relatively buoyant so far in 2017, we anticipate continued uncertainties in equity, bond and currency markets in the medium term as the potential impacts of the UK’s exit from the EU evolve over the next two years,” said Feeney.

He added that the company was “encouraged by the opportunities ahead” as it prepared to list on the stock exchange in 2018 – part of its long time planned planned ‘managed separation’ of the Old Mutual brand.

As reported, Old Mutual Wealth is set to split from the OMGI arm next year. Its chief executive, star fund manager Richard Buxton, has been reported – though has refiused to comment – to be potentially interested in a equity-backed management buy out.

ABOUT THE AUTHOR
Gary Robinson
Head of Video and Ezines at Open Door Media Publishing. Deputy Editor, International Investment. An experienced journalist and filmmaker with more than 20 years' financial services experience, both as journalist and originally as a fully qualified IFA, Gary works across both International Investment and InvestmentEurope titles. Previous video production credits include projects on BBC, C4 and SKY.

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