The company announced in a Thursday press release that by owning distribution, an investment platform, discretionary fund management and asset management divisions, it was able to rake in strong net client cash flows (NCCF) of £1.8bn, an 80% increase from the £1bn it generated in the first quarter of 2015.
The 2015 annual NCCF had itself increased by 86% to £6.9bn from 2014’s NCCF of £3.7bn.
In March 2016, the insurance giant unveiled its latest “strategic realignment,” the separation of its Old Mutual Emerging Markets, Old Mutual Wealth, Nedbank and OM Asset Management divisions from each other.
At the time, group chief executive, Bruce Hemphill, remarked that this new plan of action would allow these “four strong businesses” to “reach their full potential by freeing them from the costs and constraints of the Group.” He also anticipated that the new strategy would help each business fund its individual growth by having simpler access to capital markets and each would benefit from more straightforward regulatory arrangements.
OMW singled out its Investment Division and UK platform as notably strong performers in Thursday’s update and a chief reason for the 17% increase in gross sales to £5.4bn.
The healthy NCCF in turn increased funds under management across the board, the press release revealed. UK Platform’s, Old Mutual Global Investors’ and Quilter Cheviot’s funds under management all expanded in Q1 2016 to £35.4bn, £26.0bn and £18.0bn, respectively.
OMW CEO, Paul Feeney, added that the organisation had reaped the benefit from the UK pension freedoms rules introduced last year, which saw a rise in pension sales in the first quarter of 2016.