Old Mutual Wealth (OMW) has reported record inflows in the first quarter of 2017 with net client cash flows up 59% on last year, as the group also announces the appointment of Tim Tookey, chairman of Alliance Trust Savings and former Lloyds' group finance director, as chief financial officer.
The group said Q1 was its "highest ever quarter for net client cash flow", which jumped from £1.7bn in the same period last year to £2.7bn. This was boosted by integrated flows from adviser network Intrinsic jumping 60% to £0.8bn, up from £0.5bn in Q1 2016.
CEO Paul Feeney said the group benefited from having "the right products at the right time", especially in the multi-asset based space, which has been a key focus for the group.
In total, Old Mutual Wealth's funds under management over the last year rose 6% from £115.3bn to £122.3bn on 31 March 2017.
Old Mutual Global Investors also saw significant net flows of £2bn, up from £1.1bn in Q1 2016, raising the asset management arm's AUM to £34.6bn from £31.4bn at the start of the year.
Meanwhile, discretionary management arm Quilter Cheviot saw net inflows of £0.2bn (same as in Q1 2016), while funds under management rose from £20.7bn to £21.8bn over the quarter.
Platform business inflows were £1bn in Q1 (up from £0.7bn in Q1 2016), while FUM rose from £41.4bn to £44bn over the three months.
Feeney said: "We have started the year very strongly with our highest ever quarter for net client cash flow and funds under management.
"Our Q1 2017 net flows, particularly onto the platform and into OMGI, demonstrate that advisers and customers are increasingly recognising the strength of our model and that we are offering investment solutions that meet their needs. We have the right solutions for these uncertain times, particularly our multi-asset, absolute return and high alpha product ranges."
"While we are hopeful that this momentum will continue throughout 2017, we expect that markets will remain volatile and challenging in the medium-term, particularly until both the outcome of the upcoming general election and greater details on the terms of the UK's exit from the EU are known."
Meanwhile, the board of OMW also announced the appointment of Tim Tookey as chief financial officer, reporting to Feeney, subject to regulatory approval.
Tookey is currently a non-executive director of OMW and chairman of its audit committee.
He also serves as chairman of Alliance Trust Savings but will resign from this role while giving up certain other responsibilities to take up the CFO position at Old Mutual Wealth.
Previously, he has been CFO at Friends Life and was group finance director at both Lloyds Bank and Prudential.
Mark Satchel will become corporate finance director, acting as deputy to the CFO and George Reid takes over from Tookey as interim chair of the OMW board's audit committee. The group said it was looking for another non-executive director.
OMW said Tookey will work with Mark to prepare the business for the planned demerger and listing in the first half of 2018, as part of Old Mutual's managed separation process.
Feeney said: "I am delighted that Tim has agreed to join the executive team. He brings a wealth of capital markets, regulatory and operating experience with large publicly listed financial services companies.
"I believe that, working together, Tim and Mark will support the business through the next phase of our corporate journey as well as building on the positive momentum we have achieved."
Tookey said: "Old Mutual Wealth is a unique and successful wealth management business. I look forward to working with Paul, Mark, the leadership team and Old Mutual as we prepare this business for an independent future."
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