Old Mutual Global Investors’ funds under management reached £14.8bn in the opening six months of the year, although net flows were held back by the sale of Skandia Nordic.
OMGI, formed through the merger of Old Mutual Asset Managers (UK) and Skandia Investment Group, saw gross sales amount to £3.5bn over the six months to 30 June – up from £1.8bn for the same period of 2012. However, 2012’s figures does not include Old Mutual Asset Managers (UK) sales in the first quarter.
The firm witnessed £800m of outflows during the six months which was caused by the sale of Skandia Nordic by Old Mutual last year. The group expects to see the final £500m to £700m of Nordic outflows over the next 12 months.
The group’s half-year results says: “We have seen strong inflows into the Global Strategic Bond, UK Alpha, UK Select Equity and Global Equity Absolute Return funds. During the period we have strengthened the UK equity team, and will look to broaden our range of investment styles in the future.”
Some 49 per cent of OMGI’s funds were in the first quartile over three years, while 69 per cent were above the median. The firm hired Schroders’ Richard Buxton in the first half of the year as part of a move to bolster its UK equities desk.
Old Mutual Wealth chief executive Paul Feeney says: “This is the first period where we have really seen the benefits of the merger of Old Mutual Asset Managers (UK) and Skandia Investment Group into OMGI, with substantial growth in sales and profit.
“What is particularly pleasing to see is the constant daily flows into the majority of OMGI’s fund range.”
Old Mutual Wealth, comprising Skandia and OMGI, saw funds under management rise 9 per cent over the period, moving from £69.2bn at the start of the year to £75.2bn.
The group’s adjusted operating profit rose 14 per cent, up from £95m for the first half of 2012 to £108m in opening half of 2013.