Strong sales growth in Asia, Latin America and South Africa, on the back of the launch of products, was offset by slower sales in the UK following the launch of the Retail Distribution Review.
Funds under management rose 6% to £14.7bn by the end of the third quarter. The businesses in Germany and Austria were closed to new business resulting in a reduction in sales from Europe.
Gross sales at Old Mutual Wealth, comprising Skandia and Old Mutual Global Investors, increased by 33% in the third quarter to £3.7bn, from £2.8bn in the previous year.
Old Mutual Global Investors has funds under management of £15.2bn, up 10% on the start of the year, and recorded gross sales of £2bn in the third quarter, up 79% from £1.1bn from the same period of the previous year.
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 £0.3bn. At the end of the third quarter, 40% of funds were in the top quartile, with 66% of funds above their sector average.
Skandia UK platform sales of £1.2bn were up 40% on the comparative period (£0.9bn) with assets under management at £26.2bn up 16% since the start of the year. Old Mutual Wealth is focused on delivering the new Select range of funds and managed portfolio service for advisers in the first quarter of 2014.
For the nine months to end September 2013, Old Mutual Wealth reported total gross sales of £10.5bn, an increase of 28% on the same period in 2012 (£8.2bn). Funds under management stand at £76.0bn, an increase of £6.8bn, or 10%, since the start of the year.
Paul Feeney, chief executive of Old Mutual Wealth, said Old Mutual Global Investors had gained traction with a new brand, additional fund managers and a strong 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 the first quarter next year.”
