Skandia parent company Old Mutual Wealth has pledged to support both independent and restricted advisers as it reports a £1.8bn increase in funds under management to £67.3bn.
Old Mutual Wealth, which comprises the merged Skandia businesses within the Old Mutual group and the asset management business Old Mutual Global Investors, posted net inflows £500m during Q3. Gross sales during Q3 rose 8 per cent from the same time last year from £2.6bn to £2.8bn.
Old Mutual Global Investors saw assets increase to £13.2bn due to net inflows of £100m and positive investment returns of £600m.
For the Skandia UK platform funds under management rose 6 per cent over the quarter to £21.7bn. But net client cash flow for the platform fell from £800m in Q3 to £400m. The company says: “Trading conditions continued to be challenging, with increased pressure on household finances, and investor concerns over the eurozone, and markets more generally, impacting confidence.”
Total APE UK sales for the platform were down 9 per cent to £53m from £58m for Q3 last year.
Old Mutual Wealth chief executive Paul Feeney (pictured) says: “There have been some confusing reports recently about what the merger of the Skandia businesses into Old Mutual Wealth means, so let me be clear. Our aim is to be a provider of wealth management solutions to financial advisers and their customers. Their needs remain at the core of our business and we will support them whether they choose to offer whole of market or restricted market propositions, or both.
“We have continued to grow the business during a tough quarter for retail fund sales and the immediate focus is now on helping advisers through the RDR transition phase.”
Money Marketing revealed last month Skandia was in talks to take a stake in Keith Carby’s venture Caerus Capital Group.
In its half-yearly results published in August, Old Mutual Wealth announced it was developing a low cost fund range targeted at restricted advisers. Old Mutual said it was in discussions with a number of “high quality asset managers” to develop a new fund range for the post-RDR market.
Philip J Milton & Company managing director Philip Milton says: “Skandia says it is keeping its foot in both camps, but I would prefer it to make a committment to either independent or restricted. We could be on a slippery slope where Skandia says it supports both models but where restricted advisers get cheaper terms than IFAs.”