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Old Mutual Wealth boosted by 80% surge in Q1 inflows

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Old Mutual Wealth has seen net client cash flows increase by 80 per cent for Q1 year-on-year.

The provider recorded inflows of £1.8bn, up from £1bn in Q1 2015.

Old Mutual attributed the change to strong sales into its UK platform and investment division – gross sales increased by 17 per cent from £4.6bn to £5.4bn.

The surge of cash flows also meant that funds under management increased 3 per cent from £104.4bn to £107.1bn.

UK platform funds under management increased from £34.5 to £35.4m, while gross flows also climbed from £1.4bn to £1.6bn and net flows rising from £600m to £700m.

Old Mutual Global Investors saw funds under management increase 5 per cent from £24.7bn to £26bn, while Quilter Cheviot funds rose from £17.8bn to 18bn.

Chief executive Paul Feeney says: “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.”

It comes as the firm continues to evaluate how to manage its break up from the broader Old Mutual group.

Old Mutual announced in March that it would seek to break itself into four groups, Old Mutual Wealth, South African lender Nedbank, the South African Old Mutual Emerging Markets business and its US institutional asset management arm OM Asset Management, and observers have speculated that the move will translate for a float for Old Mutual Wealth in the UK.

A spokesman says: “We are making good progress on establishing the optimal route and sequence for the managed separation and are engaging with our stakeholders as we promised when we announced the managed separation on 11 March 2016.”

“We will update the market later in 2016 by giving greater clarity on our preferred route for separation.”

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