Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Old Mutual pumps £200m into wealth arm ahead of float

Old Mutual pumps £200m into wealth arm ahead of float

Old Mutual has pumped £200 million into its wealth arm in a bid to prepare it for its planned spin off as a separate business.

In a stock market update, the firm said that the ‘managed separation’ will occur next year, shortly after its full-year results are announced.

As part of the cost savings announced by the move, the firm said it has already reduced its London headcount by 50% with the goal of shutting its City HQ next year. The £200 million is being put into the company as a 'liquidity buffer' ahead of it becoming an independent business.

In a trading update, the firm reported that net client cash flow increased by 53% to £4.9 billion in the six months to the end of June, while funds under management rose by 10% to £127.3 billion.

Old Mutual said 'integrated flows' across the business rose from £0.7 billion to £2.2 billion year-on-year. The company highlighted Old Mutual Global Investors' multi-asset proposition as a standout performer, taking in net flows of£1.6 billion. 

Pre-tax adjusted operating profit was up 29% to £134 million, with the firm’s pre-tax operating margin rising from 28% to 30%.

Old Mutual Wealth CEO Paul Feeney (pictured) said: ‘Despite continued questions over the strength and resilience of the UK economy, including rising inflationary pressures, we saw continued growth in net client cash flows which were up 53% to £4.9 billion (H1 2016: £3.2 billion) with a particularly noteworthy performance in the UK platform and by both the multi-asset and single-strategy businesses in Old Mutual Global Investors.

‘2017 continues to be a year of transition for Old Mutual Wealth as we move towards our separation from Old Mutual plc, and we are excited about the opportunities ahead.’ 

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Wealth Manager Retreat 2017: size isn't everything

Wealth Manager Retreat 2017: size isn't everything

We asked our delegates at the Wealth Manager Retreat what they think about the recent wave of consolidation in the industry.

1 Comment Play CIO Tapes - part 3: 'passive funds are anti-capitalist'

CIO Tapes - part 3: 'passive funds are anti-capitalist'

Citywire recently gathered three of the UK's leading fund investment heads to discuss their hopes, fears and the issues that their jobs throw at them daily.

Play CIO Tapes: do investors have it as good as it gets?

CIO Tapes: do investors have it as good as it gets?

Citywire gathered three of the UK's leading fund investment heads to discuss what they fear and what makes them cheer about the year ahead

Read More
Your Business: Cover Star Club

Profile: from managing Brunei’s billions to Dorking’s pension pots

Profile: from managing Brunei’s billions to Dorking’s pension pots

Mole Valley Asset Management's boss on why he chucked in multi-billion mandates for Surrey wealth management

Wealth Manager on Twitter