Platform sales boosted Old Mutual Wealth in the first three months of 2016, as a strategic review which could see the company sold kicked off.
In March, Old Mutual began a strategic review of its businesses with the intention of separating the divisions into separate companies by the end of 2018. This would see Old Mutual Wealth sold or floated separately from the main company in South Africa.
Reports have linked a number of private equity backersand buyout funds with the company, which also owns advice network Intrinsic.
In a trading statement covering the first three months of 2016, Old Mutual Wealth said it saw gross sales increase from £4.6 billion in the first three months of 2015 to £5.4 billion in the first three months of this year.
This boosted net inflows by 80% to £1.8 billion, compared to £1 billion over the same period in 2015.
The platform, which was previously known as Skandia, attracted net inflows of £700 million and gross inflows of £1.6 billion in the period to 31 March 2016. In the same period last year it recorded £600 million of net inflows and £1.4 billion of gross inflows.
Assets under administration on the platform rose to £35.4 billion at the end of the first quarter of 2016.
Paul Feeney (pictured), chief executive of Old Mutual Wealth, said the company benefitted from the pension freedoms again, leading to high sales onto the platform.
‘We have achieved strong net client cash flows notwithstanding the volatile market conditions. We have also seen strong pensions sales in the first quarter of 2016 as we continue to benefit from the introduction of pension freedoms in the UK last year,’ he said.
Source: New Model Adviser