Old Mutual Wealth, comprising Skandia and Old Mutual Global Investors, has seen gross sales increase by 33 per cent in Q3 2013 to GBP3.7bn (Q3 2012: GBP2.8bn).
Old Mutual Global Investors now has funds under management of GBP15.2bn, up 10 per cent on the start of the year, and recorded gross sales of GBP2.0bn in Q3, up 79 per cent compared to the same period last year (Q3 2012: GBP1.1bn).
Growth was driven by strong inflows into the Spectrum range of risk targeted funds as well as the UK Alpha, Global Equity Absolute Return, UK Smaller Companies and UK Mid Cap funds, resulting in net client cash flow for the quarter of GBP0.3bn. At the end of Q3, 40 per cent of funds were in the top quartile, with 66 per cent of funds above their sector average.
Skandia UK platform sales of GBP1.2bn were up 40 per cent on the comparative period (Q3 2012: GBP0.9bn) with assets under management now at GBP26.2bn up 16 per cent since the start of the year. Sales momentum continues to build following the implementation of the RDR and Old Mutual Wealth is now focused on delivering the new Select range of funds and managed portfolio service for advisers in Q1 2014.
Gross sales for Old Mutual Wealth’s international cross-border business were up marginally on the same period last year at GBP427m (Q3 2012: GBP422m). Sales growth in Asia has been strong, whilst Latin America and South Africa have experienced positive sales momentum following the launch of new products in each of these regions. This has been offset by slower sales in the UK following the RDR implementation. Funds under management were up 6 per cent to GBP14.7bn at the end of the period. The local businesses in Germany and Austria are now closed to new business resulting in a reduction in sales from Europe.
For the nine months to end September 2013, Old Mutual Wealth saw total gross sales of GBP10.5bn, an increase of 28 per cent on the same period in 2012 (Q3 2012: GBP8.2bn). Funds under management have now reached GBP76.0bn, an increase of GBP6.8bn or 10 per cent since the start of the year.
Paul Feeney, chief executive of Old Mutual Wealth, says: “We are seeing significant momentum building as we focus our strategy on delivering high quality investment solutions to financial advisers and their clients. Old Mutual Global Investors has gained significant traction this year with a new brand, additional fund managers and a great performance track record. The platform has also seen strong sales growth and I am very excited about combining the strengths of these two parts of our business to deliver the Select proposition in Q1 next year. Select will be a world class investment proposition with scale and integrity, all at a compelling price.”