Old Mutual Wealth chief executive Paul Feeney has defended the company against claims of conflict of interest as the provider reports a significant increase in inflows from Intrinsic.
In a trading update published today, Old Mutual Wealth posted net client cash flow figures of £2.7bn for the first three months of the year, up 59 per cent from £1.7bn at the same time in 2016.
Flows from Intrinsic rose 60 per cent from £500m to £800m over the same period.
Speaking to Money Marketing, Feeney emphasised that much of Old Mutual Wealth’s business came from outside the network.
He says: “Primarily what we are is a wealth and investment solutions provider and adviser. That’s our business. The majority of our flows come from outside our own channels.
“Where Intrinsic are advising on investment solutions, these are multi-asset solutions. This is a really important point. Our own Old Mutual Global Investors funds within those make up a very small proportion, and the vast majority of products are other people’s funds.
“Our portfolio managers and our discretionary services are picking funds from the market, and if they choose to pick some of our internal funds they have exactly the same performance criteria as any other fund they choose.”
The trading figures do not include an update on the ongoing replatforming project to IFDS. Total costs for the project stood at £279m as at the end of December, compared with the £160m originally budgeted.
Feeney says he will update the market on progress no later than the company’s AGM on 25 May, but says £1.2bn in outflows over the last three months are unconnected with the replatforming.
He says: “Our platform now has £45bn in assets. There will obviously be a natural outflow from a business of that size. In overall terms the numbers may look bigger, but that’s because it’s one of the biggest platforms in the UK. Our platform alone did net client cash flow of £1bn in the first quarter, compared with £700m last year. We’re very pleased with that.
“We’ve put a lot of investment into our existing platform and proposition, to make sure we’re delivering the right products and services for advisers and clients.”