The UK wealth manager grew funds under management in the first quarter with strong sales.
Old Mutual Wealth generated net client cash flows of £1.8 billion ($2.6 billion) in the first quarter of 2016, up 80 per cent from the same period a year ago.
As gross sales jumped 17 per cent year-on-year to £5.4 billion, funds under management reached £107.1 billion, up 3 per cent from the previous quarter.
The company's asset management arm, Old Mutual Global Investors, saw funds grow 5 per cent during the quarter to £26 billion. Meanwhile, funds managed by its discretionary investment management unit, Quilter Cheviot, rose by £200 million to £18 billion.
“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 Paul Feeney, chief executive of Old Mutual Wealth.
Old Mutual Wealth, part of London-listed Old Mutual, oversaw £107.1 billion in customer investments as at the end of March 2016. In March, Old Mutual confirmed plans to split its four major business lines – Old Mutual Emerging Markets, Nedbank, Old Mutual Wealth and OM Asset Management (US) – into separate, standalone entities.
The wealth management business has been keeping active on the acquisition scene. In recent months, it agreed to acquire Sesame Bankhall’s Financial Adviser School, as well as AAM Advisory, a firm working with expats in Singapore. As reported last month, Old Mutual is also preparing to sell its Italian wealth management unit, according to Reuters.