Strong sales growth in Europe and in South Africa were offset by a “traditionally slower first quarter in Hong Kong and Singapore”, Skandia parent company Old Mutual Wealth reported in its Q1 statement today.
Despite a slow start earlier in the period, Skandia International’s sales momentum in Latin America and in the UK strengthened during March, the company said.
International funds under management stand at £15.1bn, up from £15bn at 31 December 2013.
During the quarter, agreement was also reached to sell Skandia Germany and Skandia Austria, and regulatory approval received for the sale of Skandia Poland.
In Africa (excluding South Africa), Old Mutual Wealth’s gross sales were up 27%, and it completed the acquisition of Faulu, a Kenyan micro-finance company.
Old Mutual Wealth said it is “actively looking at other opportunities in both East and West Africa, particularly in bancassurance. We have signed new distribution agreements with Mainstreet Bank in Nigeria which has 220 branches and with Ecobank in Ghana which has approximately 80 branches.”
The integration of the Ghanaian acquisition, Provident Life, was progressing well, and an Old Mutual brand-building campaign was being rolled out in Nigeria, it added.
Paul Feeney, chief executive of Old Mutual Wealth, highlighted how the 2014 UK Budget proposals will be a major boost for financial advisers.
“It is full advice [clients] need, guidance will not go far enough. They will need tailored, individual advice from a fully qualified and professional financial adviser. We are building a customer proposition that will deliver this advice along with actively managed portfolios and tax efficient products, all at a competitive cost.” he said.
A strong QROPS market in Europe drove an increase in Skandia International's sales last year.
