Old Mutual recovery continues
Johannesburg - Wealth management group Old Mutual [JSE:OML] on Thursday reported a robust sales performance across Long Terms Savings, with Annual Premium Equivalent (APE) sales up 21% to £397m in the quarter ended March 2010 compared with Q1 2009.
South Africa, including Namibia, APE sales were up 7% to R1.1bn, while Wealth Management APE sales were up 62% to £210m, with UK up 72%. APE sales in Nordic fell 23% to SEK606 million as management actions took effect.
Unit trust sales were up 39% to £1.956bn, with rapid growth in the UK and the Nordic areas. It was also the group's strongest quarter to date on its UK platform with net inflows of nearly £1bn.
It also reported strong growth in funds under management, which were up 8% in the March quarter to £309bn.
Retention and net client cash flow remained strong across Long-Term Savings (LTS), with LTS inflow of £1.4bn, compared to outflow of £1.6bn in Q1 2009.
Julian Roberts, group chief executive, commented: "The group delivered an excellent underlying sales performance during the first quarter, showing a marked improvement on the equivalent period last year and continuing the good recovery that began in the second half of 2009. The UK performance is particularly pleasing, reinforcing our confidence in the position of our Skandia platform model and its prospects for capturing funds.
"We have created a firm foundation upon which our LTS businesses are beginning to deliver the strategic targets on cost savings and return on equity which we set out in our preliminary announcement in March. Cost reduction programmes are already underway across our LTS division and we continue to enhance our sales and distribution mechanisms."
- I-Net Bridge