Old Mutual FUM up 6% in Q1
Old Mutual Group has increased overall funds under management (FUM) in spite of lower sales in its wealth management business.
The interim statement from the parent company of Old Mutual Asset Managers UK and Skandia Investment Group (SIG) saw FUM rise by 6 per cent in the first quarter of 2012 to £284.2bn, helped by a 7 per cent increase in FUM for its Long-Term Savings division from £108.5bn in December to £116.1bn.
However in the first quarter the wealth management part of the Long-Term Savings division saw annual premium equivalent (APE) sales fall 21 per cent to £153m which the group says reflected continued market volatility and weakening investor confidence.
UK platform gross sales were also down year-on-year to £1.1bn compared with £1.4bn for Q1 2011, while wealth management mutual fund and unit trust sales overall dropped 4 per cent to £1.12bn.
In particular mutual fund sales fell 33 per cent year-on-year from £470m in Q1 2011 to £316m in the first three months of 2012.
However Old Mutual noted: “We continue to make good progress on our preparations for the RDR, while waiting for the definitive rules to be finalised.”
Julian Roberts, group chief executive, acknowledged the prolonged turmoil in the eurozone has continued to undermine investor confidence and created a subdued retail investment market in Europe as a whole.
But he added: “Our strong franchises and significant exposure to higher growth emerging markets underpin prospects for the year as a whole.”