'Unusually high' performance fees drive 2017 profits higher at Old Mutual Wealth

Buxton-led business will be split off in H2 2018

Old Mutual Wealth saw pre-tax profits rise 40% in 2017 as a result of an "unprecedented" level of performance fees, while the group confirmed it will spin off its single-strategy business, led by Richard Buxton, in the second half of 2018.

In its annual results, the firm said pre-tax profit at firm was £363m, up from £260m in 2016, and included £101m in performance fees, which had grown from £26m in 2016.  For the single-strategy business, pre-tax profit was up from £60m to £152m including performance fees of £84m, which the group said were at an "unusually high level reflecting exceptional performance from a narrow range of funds in favourable market conditions". Net client cash flows were also strong, climbing 110% from £5.2bn to £10.9bn driven by "buoyant market conditions and robust investor confidence".   Revenu...