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Old Mutual rakes in Buxton's billion and buys Intrinsic

Old Mutual rakes in Buxton's billion and buys Intrinsic

Old Mutual Wealth has bought the network Intrinsic in a move that will add 3,000 restricted and independent advisers to the group and broaden its distribution.

The deal will see Old Mutual Wealth’s platform, protection and investment offerings added to Intrinsic’s panels.

Paul Feeney (pictured), CEO of Old Mutual Wealth, said that with one in 10 UK financial advisers being an Intrinsic member, the acquisition will further strengthen the group’s presence in that market.

‘We want to improve access to wealth management services for people right across the UK,’ he said.

Although the acquisition stole the headlines as the group announced its full-year results, Richard Buxton’s UK Alpha fund notably attracted close to £1 billion, helping to drive Old Mutual Wealth’s profits up 11% to £217 million last year.  

The group’s fund arm, Old Mutual Global Investors, saw overall net inflows of £700 million in 2013, up from £300 million the previous year.

Parent group Old Mutual’s profit rose 15% to £1.6 billion, prompting the board to raise the dividend by 16% year-on-year. Total fund under management were up 19% to £293.8 billion.

In the first year’s results since the retail distribution review (RDR), Old Mutual revealed that outsourcing its fund administration to IFDS will cost the group £140 million over the next three years, £20 million of which has already been incurred.

Old Mutual's share price was up 8.53p, or 4.58%, to 194.73p in mid-morning trading.

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