Old Mutual Wealth (OMW), which includes Old Mutual Global Investors and the Skandia fund platform, saw its assets under management increase 8% in thefirst quarter to £74.5 billion (€88 billion).
This was driven by a £4.9 billion increase due to market movements and net flows of £410 million.
Gross sales during the quarter were up 19% on the same period last year to £3.1 billion.
OMW’s Skandia International business had a “strong” quarter with net inflows of £134 million, compared to a £12 million net inflow in the first quarter 2012. This contributed to an increase in assets under management of 6% to £14.8 billion.
Gross sales were up 15% to £449 million. South Africa and Asia were the main drivers.
A new wealth management service, called Wealth Interactive, has been introduced and includes new products for Singapore and the UK. Other regions will be included later this year.
The Skandia UK platform saw net inflows of £498 million during the quarter, which contributed to a 9% increase in funds under management to £24.7 billion.
OMW says that the final platform rules announced recently by the Financial Conduct Authority “confirm that Skandia’s unbundled platform proposition is now the only platform in the market that is aligned with both the new RDR [Retail Distribution Review] rules and the new platform rules…”.
The RDR has changed the UK retail market in terms of adviser charging and customer discounts in the form of unit rebates.
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