6th Nov 2013 08:24
LONDON (Alliance News) - Old Mutual PLC Wednesday said its funds under management have risen 9.6% in the year to date, buoyed by positive net client cash flows and market movements.
The long-term savings, investment, banking and protection company said its funds under management from core operations were GBP287.5 billion on September 30, compared to GBP262.2 billion as reported on December 31, 2012.
On a constant currency basis, the increase was 14%, as the December 31 figure would have been GBP252.9 billion.
The rise in funds under management over the first nine months of the year was supported by a positive net client cash flow of GBP2.6 billion over the third quarter, which had last year seen a negative net flow of GBP800 million.
The positive net client cash flow was largely down to Old Mutual's US asset management business, which attracted GBP1.5 billion of the flows over the third quarter, taking the division's funds under management to GBP150.3 billion on September 30.
The business's recovery will fuel speculation that Old Mutual will speed up the process to float the US business in an initial public offering, but Chief Executive Julian Roberts, speaking to journalists in a conference call, declined comment about the likelihood or timing of such an offering.
"Gross sales in Emerging Markets continue to be healthy and Old Mutual Wealth saw a large rise in gross sales on the UK platform and in Old Mutual Global Investors. US Asset Management produced positive cash flows of GBP1.5 billion and Nedbank improved its operational performance," Roberts said in the company's trading statement.
"We remain confident that our strategy and our geographic focus underpinned by our financial discipline leaves us well positioned for future growth," he said.
Overall, gross sales were up to GBP6.51 billion over the third quarter, compared with GBP5.85 billion in the corresponding period in 2012, with Old Mutual Wealth performing strongly, increasing its own gross sales 33% to GBP3.74 billion.
Old Mutual shares were Wednesday morning quoted at 201.90 pence, up 1.2%.
By Samuel Agini; [email protected]; @samuelagini
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