Old Mutual Wealth saw net cash flows fall in the third quarter of the year, a drop it blamed on pension freedoms.
Net cash flows of £900m was a reduction on the same quarter in 2015 when there were net flows of £2.3bn.
Old Mutual Wealth branded this “exceptional” because of the pension reforms saw clients withdraw cash.
Year-to-date net client cash flow was £4.1bn compared to £4.6bn for the same period in 2015, with the decrease attributed to market weakness and uncertainty following the outcome of the European Union referendum in June.
Paul Feeney, chief executive of Old Mutual Wealth, said: “We have continued to grow our business and our market share despite the challenging markets which have prevailed for much of 2016.
“We expect markets to remain difficult for some time given the uncertain conditions surrounding the UK’s exit from the European Union.
“We are seeing early signs that our customers are regaining confidence and returning back to risk assets, albeit tentatively. However, we believe that our focus on staying close to our customers at all times will help us maintain our market leading position.”
Year-to-date gross sales increased by 9 per cent to £16.7bn, primarily driven by strong flows into Old Mutual Global Investors.
Funds under management increased by 14 per cent to £119bn since the start of the year while UK platform funds under management increased by 14 per cent to £40bn.
The platform also had year-to-date gross flows of £4.7bn and year-to-date net client cash flows of £1.9bn.
Old Mutual Global Investors’ funds under management increased by 16 per cent to £29bn and Quilter Cheviot’s funds under management increased by 11 per cent to £20bn.
Old Mutual Wealth is going through the process of a demerger from the other arms of the Old Mutual business.
This will culminate with the company being listed on the London and Johannesburg stock exchanges by the end of 2018.
