Far East sales hamper growth at

Skandia International has seen its funds under management (FUM) grow by just 2% this year, as strong UK offshore sales are offset by lower sales in the Far East.

Far East sales hamper growth at

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The branch, which is part of Old Mutual Wealth, reported international FUM of £15.3bn as of 30 September, up from £15bn on 1 January.

It also saw gross sales of £0.4bn through the third quarter, exactly the same as the equivalent period in 2013.

“Good sales in UK offshore have been offset by lower sales in the Far East,” the company said.

Skandia International will become the last part of the company to rebrand as Old Mutual Wealth by the end of the year.

Meanwhile, Old Mutual Global Investors (OMGI) saw strong net client cash flow (NCCF) of £0.4bn over Q3. This marks a total NCCF of £1.4bn for the year to date, 180% higher than the same period in 2013.

Additionally, OMGI’s FUM has risen by 9% since the start of the year to reach £17.4bn.

“An additional £1.8bn, representing the Cirilium fund range acquired with Intrinsic, will become part of OMGI’s product proposition in December 2014,” the company added.

Strong net inflows

As a group, Old Mutual continued to grow in Q3 2014, with an NCCF of £0.8bn throughout Q3, a 33% increase on Q3 2013.

Additionally, gross sales of £3.8bn took year-to-date sales to £11.5bn, a 10% increase on 2013, boosting total FUM to £82.2bn.

“This has followed strong net flows into the UK platform and Old Mutual Global Investors,” the company said.

Chief executive Paul Feeney added: “The acquisitions of Intrinsic and Quilter Cheviot this year add the elements of customer offering that we didn’t previously have, and we continue to develop our platform and asset management businesses.

“We now operate under one brand following the rebrand of Skandia to Old Mutual Wealth and are well positioned to continue developing great value and transparent products and services for financial advisers and their clients.”

In September, Skandia International became the latest life company to stop charging advice to the annual 5% tax-free withdrawal on its offshore bonds.

The development follows HM Revenue & Customs’ recent confirmation that all advice relating to investments linked to offshore bonds can be considered as advice to the life company rather than the adviser, provided certain conditions are met.

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