The international division’s net inflows of £134m also jumped from £12m in Q1 2012, which helped to increase assets under management by 6% to £14.8bn.
The new Wealth Interactive service has been introduced successfully with new products in Singapore and the UK, and is expected to launch in other regions later this year, Old Mutual said in today’s statement.
Old Mutual Wealth, comprising both Skandia and Old Mutual Global Investors, increased assets under management by 8% during the first quarter of the year to £74.5bn, as at 31 March 2013. Growth was driven by net inflows of £410m and positive market movements. Gross sales during the quarter were up 19% on the same period last year to £3.1bn.
There was an improvement in sales in all regions other than the UK, where “the continued uncertainty around new regulations has had an impact on distribution in the UK, such that the UK platform net client cash flow was down 10% at £498m”.
Old Mutual said in the UK many independent financial advisers experienced “challenges in transitioning to the new regulatory framework. While these challenges are expected to remain in the short-term, we remain confident that we are well placed to be net beneficiaries of the RDR”.
Group life APE sales were up 19% with the South African Mass Foundation Cluster up 16%, benefiting from a larger sales force and the inclusion of credit life sales. Sales in the Rest of Africa grew 18%, and Asian sales were reclassified from non-covered sales to life APE sales. Old Mutual also reported that it is now trading in Nigeria via its joint venture with Ecobank.
To read International Adviser‘s full analysis of the ABI’s fourth quarter new business sales of offshore bonds into the UK, click here.
