RDR is double-edged sword for Old Mutual

Old Mutual Asset Management (OMAM) reported flat net flows of £0.4bn for the first quarter of the year, due in large part to outflows from Skandia Nordic.

RDR is double-edged sword for Old Mutual


A total of £225m outflows from the branch were reported, with more expected over the coming months.

Funds under management, however, increased 8% to £74.5bn and sales reached £3.1bn, an increase of 19% on the previous quarter. 

The group as a whole, which reported a 13% profit dip for 2012, saw net client cash flow reach £3.9%, and a 7% increase in funds under management since the final quarter of 2012.

The UK business saw positive net inflows, with management stating the firm is ‘well placed’ to be net beneficiaries of RDR.

Data from the Skandia platform, however, suggested otherwise as it reported a 10% fall in net inflows in the three months to March 31. Inflows were £498m, compared to £551m in the same period last year.

The decline has been attributed to ‘continued uncertainty around the regulations’. Positive market movement did lead to a 9% increase in overall assets on the platform, taking the total to £24.7m.

In the past few weeks Skandia revealed it is to keep rebates on as many funds as possible, a move contrary to that of its competitors. A spokesperson said abolishing rebates would be detrimental to the majority of clients.