Old Mutual held back by weak markets


Old Mutual held back by weak markets

Published Date: 2018-05-02 | Source: Stephen Gunnion | Author: Stephen Gunnion

Old Mutual held back by weak markets

The JSE's All Share Index declined 6.8% in the first quarter of the year, impacting shareholder investment returns

Weak equity markets in the first quarter of the year have hampered Old Mutual ahead of its managed separation next month. In a statement at its annual general meeting on Monday, the financial services group said its continuing operations in Old Mutual Limited started the year on a positive note, but shareholder investment returns reflected the impact of lower equity markets in South Africa and particularly in Zimbabwe. After reaching an all-time closing high of 61 685 in late January, the JSE ended the first quarter of the year 6.8% lower.

Old Mutual plans to list Old Mutual Limited, its emerging-markets business, on the JSE and the London Stock Exchange on 26 June, with secondary listings on the Malawi, Namibian and Zimbabwe stock exchanges.

Wealth arm Quilter, which will be unbundled and listed separately on the London and Johannesburg stock exchanges on 25 June, reported a 14% rise in net client cash flow to £1.6 billion over the quarter, excluding its single strategy funds, with assets under management and administration down 2% to £111.6 billion. It said negative market movements were partially offset by the strong net client cash flow.

"Management remains focused on managing the cost base tightly and delivering on its communicated strategy," the group.

Meanwhile, it said Nedbank was delivering on expectations and would update the market on its performance at its AGM on 10 May. Old Mutual plans to distribute 32% of Nedbank's ordinary shares to shareholders later this year, while retaining a strategic minority stake of 19.9%.

Old Mutual's shares ended 1.4% lower at R43.40 on Monday. Nedbank rose 2.7% to R297.47.

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