Old Mutual Wealth has reported double digit growth (10 percent) in funds under management (FUM) for the six months ending 30 June 2017 to stand at £127.3 billion.
Pre-tax adjusted operating profit rose 29 percent to £134 million with the firm’s pre-tax operating margin rising from 28 percent to 30 percent. The firm also reported an IFRS post-tax profit of £42 million compared with a loss of £23 million in the comparative period of 2016.
Net client cash flow increased by 53 percent to £4.9 billion while gross sales were up by 34 percent to £14.1 billion.
Paul Feeney, chief executive of Old Mutual Wealth, commented: “The period has seen strong performance across each of our Invest and Grow business areas.
"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 with a particularly noteworthy performance in the UK Platform and by both the multi-asset and single-strategy businesses in Old Mutual Global Investors.
“Recognising the importance of sound financial advice in securing good customer outcomes, we have continued to invest in distribution with the completion of our acquisition of Caerus and a number of small acquisitions into Old Mutual Wealth Private Client Advisers.
These results are ahead of the managed separation of Old Mutual parent firm's four main businesses - Old Mutual Emerging Markets, Old Mutual Wealth, Nedbank Group and OM Asset Management in the US.
Mr Feeney said: “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.”
In preparation for the separation Old Mutual Wealth appointed a Tim Tookey as chief financial officer as well as hiring Mark Satchel as corporate finance director. Additionally, Rosie Harris and Jon Little joined the board as independent non-executive directors, with Ms Harris becoming chair of the Old Mutual Wealth board risk committee.
The listing of Old Mutual Wealth is expected to take place in 2018.