Old Mutual Wealth is comprised of Skandia, Skandia International and Old Mutual Global Investors. It said net cash flow was up 50% in the first half of the year to £1.2bn and funds under management nudged up 2.3% to £80.3bn over the six months.
The increase in sales was due in large part to strong demand coming via the Skandia UK platform, the company said. The platform posted sales of £2.5bn, 11% up on the same period last year. Profit for the platform was up sharply to £10m in the first half of the year, from £2 million in the first half of 2013.
OMGI’s UK Alpha and Global Equity Absolute Return funds also made significant contributions as OMGI’s total FUM climbed to £17bn as of 30 June, while profit doubled versus the same period last year to £16m.
This is the last set of half year results in which Old Mutual Wealth will use the Skandia name as the company confirmed last month it would eliminate Skandia branding from its offerings in September and bring everything under the Old Mutual name.
“Our focus is on building investment solutions that meet different customer needs, said Paul Feeney, chief executive. “We believe that is what people need to help them secure their financial future and these results are a good endorsement of that strategy,” he added.
“Preparations are well under way for us to start using the Old Mutual brand in the UK at the end of September and internationally at the beginning of next year,” Feeney continued. “This marks a tipping point in our transition from primarily a platform provider to a broader investment solutions provider,” he said.
