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Old Mutual acquires Intrinsic

Old Mutual Wealth has announced the acquisition of 3,000 adviser firm Intrinsic.

The move, first tipped by Money Marketing in December, will see Intrinsic retain its brand and management team.

Skandia’s protection products will be added to Intrinsic’s panel for its mortgage and protection advisers and its platform will be added to Intrinsic’s platform panel. 

Intrinsic’s Cirilium asset management offering, managed by Henderson, will continue to be part of its investment proposition with advisers also getting access to Old Mutual Wealth’s investment products. Intrinsic will continue to offer independent and restricted advice with Old Mutual Wealth likely to look to promote its new Wealth Select range through the restricted arm in the future. 

Old Mutual Wealth chief executive Paul Feeney says: “Wealth management is not just for the wealthy. Most people need high quality individual advice to help them secure their financial future, to achieve their goals and look after their families. We believe passionately in this and want to improve access to wealth management services for people right across the UK.”

Intrinsic chief executive Richard Freeman says: “Ownership by Old Mutual Wealth will bring a host of benefits to our customers and to our business. It will deliver a first-class proposition with the investment platform, investment solution and advice relationship fully aligned in a way that provides real value for money.”

Intrinsic shareholders include Sanlam, Aegon and Friends Life. The firm acquired Positive Solutions from Aegon in June. The network posted a pre-tax profit of £5.2m for 2012, up 62 per cent from £3.2m in 2011. The network also set aside over £2m in relation to expected complaint settlements, compared to a provision of just over £1m in 2011.

By taking on Positive Solutions’ 850 advisers, Intrinsic increased its total adviser headcount to around 3,000.

The deal was revealed as Old Mutual announced its results for 2013. Old Mutual Global Investors saw profits of £15m for the year, a big increase on £2m the previous year. Platform assets reached £27.3bn by the end of 2013, after starting the year at £22.6bn, with net inflows of £2.4bn.

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Comments

There are 8 comments at the moment, we would love to hear your opinion too.

  1. As a long-time supporter of Skandia I was uncomfortable with the OM takeover, having witnessed the muck ups they made years ago of acquisitions in the 80’s.

    Skandia still has much to commend it, but the ever burgeoning influence of OM from what I have seen so far is by no means all to the good.

    We have the messing about with funds. OM seems to think that their input into asset managers (who have a far better record) adds value, when in fact it is nothing more than a revenue raising exercise. Pray tell what advantage is there to the investor of sticking your oar into Black Rock, Newton or Schroder funds for example? What nonsense to list them alphabetically under ‘O’ than under B, N or S. Why is it that funds can be transferred wilily nilly into the new OM guise, but automatic transfer into the cleaner share classes cannot be achieved in bulk?

    We had early evidence of the change of attitude when they offered a find an adviser facility on the client web site. It was by no means only for independents – so restricted and presumably tied are also included. (I refused to register as it wasn’t for independents).

    Now we have further evidence that the old Skandia ethos of supporting independent advice is being thrown overboard with the acquisition of retail outlets, who will no doubt compete with OM products on better terms.

    It seems that my misgivings were well founded. Don’t misunderstand; there are still many attributes that Skandia have that are really first class. If other providers had service standards half as good we would be ecstatic. They are still the only platform who is able to pay the funds under management charge from pro rata across the board deductions. Their Collective Retirement Account was and is an industry leading innovation. But for how much longer if OM are forever tightening their grip? It seems that we may soon lose the Skandia name altogether to be replaced by the less than attractive OM title. Old is hardly a go- go term and mutual they ain’t.

  2. Test Comment 10.47 FW

  3. It saddens me to say but I have to totally agree with Harry ( not to say I am sad to agree with Harry !! but with the whole OM stance and the knock on effect with Skandia)

    Time will tell, but this may turn out to be a very expensive “Bag of Ferrets”

  4. James Lindon-Travers 1st March 2014 at 3:15 pm

    I am puzzled that Mr Freeman has sold the family silver at such an early stage in the economic recovery. With RDR only a year old and having made little impact with funds on platform, wouldn’t it have been better to wait a while before nipping down to the Rolls Royce showroom?

  5. Hector's House 3rd March 2014 at 4:08 pm

    Surely this must mean goodbye to the Positive Solutions Brand?

  6. If the regulator needed a representative cross section of the good, the bad and the ugly of the advice sector they have it on these blogs in abundance.

  7. @ Exasperated

    I’m not even going to ask!

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