InvestmentsNov 5 2014

Old Mutual Wealth sees sales and assets rise in Q3

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Old Mutual Wealth has said its third quarter results were helped by good inflows into its fund management arm and the strongest quarter of the year for its platform.

The company said the net amount of cash clients gave it rose 33 per cent to £800m from £600m in the same quarter last year while gross sales his £3.8bn for the period, up slightly from the £3.7bn figure in Q3 last year.

Year to date gross sales hit £11.5bn though - a 10 per cent increase on last year while funds under management now sit at £82.2bn, up 5 per cent since the start of the year thanks to strong sales by Old Mutual Global Investors (OMGI) and the platform.

OMGI saw net sales of £300m in Q3 but this means the group has secured £1.4bn in net sales year to date, which is 180 per cent higher than the same period in 2013.

It now has assets under management of £17.4bn and an additional £1.8bn will be added in December when the Cirilium fund range it acquired with advice network Intrinsic is formally put into the product range.

The group also said its research fund range WealthSelect and the associated managed portfolio service has now hit £500m since its February launch.

The platform delivered the strongest quarter of the year, the group said, notching up £500m of net sales compared to £400m for the same period last year. The group said the increased Isa allowance had helped. Also, 6 per cent of September’s platform sales via the platform were sourced via Intrinsic, up from 3 per cent in July.

Paul Feeney, chief executive of Old Mutual Wealth, said the acquisitions of Intrinsic and Quilter Cheviot this year “add the elements of that customer offering that we didn’t previously have and we continue to develop our platform and asset management businesses”.

“We have added significant fund management talent to Old Mutual Global Investors with the recent appointments of Joshua Crabb, Ian Orminston and Russ Oxley.

“We have also removed our minimum platform charge and our pension drawdown fee to deliver greater value to customers.”