Old Mutual Wealth, comprising Skandia and Old Mutual Global Investors, has reported an increase in funds under management of GBP1.8bn during quarter three to GBP67.3bn as at 30 September 2012.
Overall assets have increased by GBP8.7bn so far in 2012 (GBP58.6bn 31 December 2011), including GBP4.1bn representing the transfer in of OMAM (UK) from the start of Q2 2012.
The Q3 increase was driven by net inflows of GBP0.5bn and other movements of GBP1.3bn, which included positive investment returns but was reduced by the sale of the Skandia business in Finland during the period. Gross sales during Q3 were GBP2.8bn, up eight per cent on last year (GBP2.6bn Q3 2011).
Old Mutual Global Investors saw assets grow by six per cent to GBP13.2bn as a result of net inflows of GBP0.1bn and positive investment returns of GBP0.6bn. The Skandia UK platform saw net inflows of GBP0.4bn, helping increase funds under management to GBP21.7bn.
Skandia International recorded gross sales of GBP0.4bn but funds under management decreased to GBP13.7bn (GBP14.6bn Q2 2012) almost exclusively as a result of the sale of its business in Finland.
Paul Feeney, chief executive of Old Mutual Wealth, says: "There have been some confusing reports recently about what the merger of the Skandia businesses into Old Mutual Wealth means, so let me be clear. Our aim is to be a provider of wealth management solutions to financial advisers and their customers. Their needs remain at the core of our business and we will support them whether they choose to offer whole of market or restricted market propositions, or both.
“We have continued to grow the business during a tough quarter for retail fund sales and the immediate focus is now on helping advisers through the RDR transition phase. Our adviser charging process and the new charging structure for our UK platform were announced in August and we are working with advisers to ensure they are clear on the changes and how they will affect their business and their customers.”