Old Mutual sales hit by weaker currency

Old Mutual has been restructuring its business, selling off some European assets and listing its US asset management arm.

It is looking to expand in sub-Saharan Africa and has increased its focus on wealthy British private investors, seen as a growing and profitable market.

In October, Old Mutual announced its wealth management arm is to buy Quilter Cheviot from European private equity house Bridgepoint, which will add some £15bn to the Old Mutual Wealth unit’s assets under management.

“We are very pleased with the resilient performance in challenging markets,” finance director Ingrid Johnson said.

“Gross sales were influenced by translation effects with the weaker rand, and by volatility on the institutional side.”

Gross sales totalled £6.2bn in the quarter, down from £6.5bn in the same period last year, the firm said.

Funds under management were up 5 per cent at £308bn at the end of September, compared with a year earlier.

But net client cash flows dropped to £0.6bn in the quarter, from £2.6bn a year ago.