5th Nov 2014 07:27
LONDON (Alliance News) - Anglo-South African financial services group Old Mutual PLC Wednesday reported a rise in funds under management to the end of the third quarter, bolstered by growth within its wealth division.
In a statement, the investment, savings, insurance and banking group said it had GBP307.6 billion of funds under management in its core operations at the end of September, an increase from the GBP300.5 billion reported at the beginning of the quarter.
The increase was driven by GBP800 million of net inflows into Old Mutual's wealth division, which, together with GBP1.9 billion of net inflows into OM Asset Management, the holding company for its majority-owned US-based institutional asset management business, more than offset GBP1.9 billion of net outflows from its non-US-based boutique and GBP200 million of net outflows from Nedbank. Funds under management also benefited from positive market movements.
Old Mutual reported gross sales of GBP6.19 billion in the third quarter, lower than the GBP6.51 billion reported in the corresponding period last year, as a 13% decline in emerging markets more than offset a 1% rise in emerging markets.
The group said third-quarter net client cash flows fell to GBP600 million from GBP2.6 billion.
"We have made good progress on our strategic agenda to transform the group and improve its sustainable growth profile. We have completed the IPO of OM Asset Management, Nedbank has subscribed for a 20% stake in ETI and we have agreed to acquire Quilter Cheviot. These are highly significant milestones in our future development," Chief Executive Julian Roberts said in a statement.
"We have delivered a resilient performance in our South African businesses despite slower growth in the economy. We are starting to see signs of improved performance in property and casualty. Nedbank's good performance reflects its early action taken in anticipation of the challenging macro-economic environment," Roberts added.
"Old Mutual Wealth had another strong quarter, with a greater proportion of assets flowing through the platform into Old Mutual Global Investors. OM Asset Management generated good quality net client cash flow in the quarter," Roberts said.
"While economic activity remains subdued in South Africa, with consumers remaining under pressure, the government's medium term budget policy statement is positive for the economy as a whole. Growth remains robust elsewhere in Africa. The UK retail financial services market is large and developing fast. Old Mutual Wealth's vertically integrated business means it is well positioned to deliver profitable growth," the CEO said.
By Samuel Agini; [email protected]; @samuelagini
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