2 Min Read
(Corrects headline and story to show that figures refer to Old Mutual Wealth, not Old Mutual Plc. Rewrites last paragraph to show that statement is from Old Mutual Plc, not Old Mutual Wealth. Makes clear throughout that data is for period ended Sept. 30.)
Oct 11 (Reuters) - Financial services group Old Mutual Plc , which has said it will split into its four main businesses, reported a jump in funds under management at its Old Mutual Wealth business for the nine months ended Sept. 30, driven by strong net flows and favourable market movements.
The Anglo-South African company said funds under management at Old Mutual Wealth rose by 14 percent in the period to 119 billion pounds ($148 billion).
Net client cash flows fell to 900 million pounds in the third quarter from 2.3 billion pounds a year earlier.
Over the nine months, net client cash flows fell to 4.1 billion pounds from 4.6 billion pounds in the same period last year, hurt by market weakness and uncertainty following Britain's vote to leave the European Union.
"We expect markets to remain difficult for some time given the uncertain conditions surrounding the UK's exit from the European Union," Paul Feeney, CEO of Old Mutual Wealth, said.
He added, however, that Old Mutual Wealth had seen early signs of customers regaining confidence and "tentatively" returning back to risk assets.
Gross sales rose by 9 percent to 16.7 billion pounds in the nine-month period, Old Mutual Wealth said.
Old Mutual Plc said it would continue to cut its 66 percent stake in OM Asset Management. ($1 = 0.8042 pounds) (Reporting by Noor Zainab Hussain in Bengaluru; Editing by Sunil Nair)