Funds under management was up by 7% to £111.2 billion.
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LONDON-Financial services company Old Mutual PLC (OML.LN) Thursday reported a rise in interim net profit as it benefited from lower tax expenses and said its plan to split itself into four businesses is progressing well.
Old Mutual also reveals figures that show restricted Intrinsic advisers are delivering 33 per cent of net flows into the platform and 26 per cent of flows to Old Mutual Global Investors.
The head office in London is being restructured to support a holding company focusing mainly on two functions. Despite pre-referendum uncertainty, OMW recorded flows of £3.2 billion, an increase of 39% on the previous year. It said there was likely to be further job losses in the separation of businesses. This was mainly attributed to operational challenges and tough markets.
“This has been a challenging six months for Old Mutual Wealth, and the whole industry, with volatile markets dominating the first half of this year, indeed it was the worst period for net retail flows for the industry in 20 years”, said Old Mutual’s chief executive Paul Feeney.
Redesign of head office with new objective of supporting managed separation: around 50 percent headcount reduction by year-end, leading to a 10 million pounds run rate saving from 2017.
Earlier this week the group announced the sale of its Italian wealth arm for €278m (£239m) to financial group Ergo Italia, which is backed by buyout firm Cinven. At £342.7 billion, funds under management came in 3% lower in constant currencies – up 5% higher from the year-end in reported currency.
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Its adjusted operating profit fell to £708 million, down 22% in reported currency and 9% on a constant currency basis. “We are clear about the task at hand and we are absolutely confident that this is the right strategy to unlock value”.
