30th Apr 2018 07:25
LONDON (Alliance News) - Dual-listed financial services firm Old Mutual PLC said on Monday, ahead of its annual general meeting later in the day, that its businesses continue to trade in line with its expectations.
Old Mutual Ltd group's continuing operations started the year on a "positive note", and results from operations are in line with management expectations.
Since the year end, shareholder investment returns reflect the impact of "lower equity markets" in South Africa and Zimbabwe. However, Old Mutual said management remains focused on managing the cost base "tightly" and delivering on its strategy.
Nedbank Group Ltd's performance for the three months to March 31 was in line with management expectations.
Separately on Monday, Quilter - a part of Old Mutual formerly known as Old Mutual Wealth - reported that net client cash flow for the first quarter of 2018 was up 14% on the prior period at GBP1.6 billion excluding Single Strategy.
However, assets under management & administration was down 2% to GBP111.6 billion excluding Single Strategy, with "negative market movements" partially offset by strong net client cash flow.
The Single Strategy Business generated net client cash flow of GBP1.4 billion during the quarter. Good progress is being made in obtaining regulatory approval for the sale of the business, Quilter said, and it continues to expect completion in the second half of 2018.
"First quarter net client cash flow has continued the strong momentum seen in 2017, particularly in our Advice & Wealth Management Segment. We have experienced increased net flows across all our businesses with the exception of Quilter International, which has had a slow start to the year following a very strong final quarter in 2017, and Quilter Life Assurance," said Quilter Chief Executive Paul Feeney.
"We are delighted that the formal process of listing Quilter PLC on the London and Johannesburg stock exchanges has now commenced and we continue to be excited by the opportunities ahead for us beyond our planned listing in June," Feeny added.
Earlier in April, Old Mutual said its final separation will proceed in three steps: The listing of Quilter and the distribution of 86.6% of Quilter's issued share capital to Old Mutual PLC shareholders; the listing of Old Mutual Ltd in South Africa; and the unbundling of Nedbank which will involve 32% of its share capital distributed to Old Mutual Ltd shareholders.
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