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Skandia posts £13m profit as OMGI assets reach £16bn

Skandia has posted a £13m profit for 2013 compared with a £2m profit for 2012.

Assets on the platform went from £22.6bn to £27.3bn as at 31 December 2013, with net inflows of £2.4bn.

Old Mutual Wealth’s asset management arm Old Mutual Global Investors totalled £15m for the year, jumping from £2m in the previous year on the back of higher assets under management, improved performance-related fees and the movement of assets into higher-margin products.

OMGI’s AUM reached £16bn by 31 December 2013 –  up 15.9 per cent from the £13.8bn pos-ted at the end of 2012. The asset management house benefited from net inflows of £700m over the year.

Inflows were bolstered by the group’s hire of Richard Buxton from Schroders in June, which led to his Old Mutual UK Alpha fund taking almost £1bn in fresh money across the year.

Overall Old Mutual Wealth, which includes the Skandia and OMGI businesses, reported a 36 per cent increase in pre-tax pro-fit from £160m to £217m. On an IFRS basis, operating profit rose 11 per cent from £195m to £217m.

Old Mutual Wealth chief executive Paul Feeney says: “With developments like WealthSelect, our range of portfolio management solutions, we are going beyond being simply a transactional platform to providing the solutions that can help financial advisers manage their clients’ wealth.”

Mackenzie Taylor Wealth Management director Ken Taylor says: “I am not a huge fan of the Skandia platform and in my view Old Mutual Wealth will need every penny to reinvest in the platform business.”

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