5th May 2016 07:02
LONDON (Alliance News) - Old Mutual PLC Thursday said its majority-owned South African banking subsidiary Nedbank Group Ltd reiterated guidance for 2016, as it saw funds under management rise in its Old Mutual Wealth business.
Old Mutual Wealth's funds under management rose 3% since the start of 2016 to GBP107.1 billion, it said, from GBP104.4 billion in the fourth quarter of 2015.
It saw strong net client cash flows of GBP1.8 billion in the quarter, up 80% compared to the first quarter of 2015, whilst gross sales rose by 17% to GBP5.4 billion from GBP4.6 billion a year before.
"We have achieved strong net client cash flows notwithstanding the volatile market conditions. We have also seen strong pensions sales in Q1 2016 as we continue to benefit from the introduction of pension freedoms in the UK last year," said Chief Executive Officer of Old Mutual Wealth Paul Feeney in a statement.
Meanwhile, at Nedbank, in a statement at the company's annual general meeting, the company said its saw a "solid performance" in the first quarter in line with managements expectations.
Nedbank continues to work with Old Mutual on its programme of 'managed separation', it said.
Nedbank reiterated its 2016 forecast, continuing to expect lower growth in its diluted headline earnings per share for the year.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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