OLD MUTUAL GLOBAL INVESTORS’ GROWTH MOMENTUM CONTINUES
STRONG H1 2014 WITH PROFITS UP 100% ON H1 2013
Old Mutual Global Investors had a very strong first half of 2014. Funds under management (‘FUM’) reached £17.0 billion at 30 June 2014, up 6% on the start of the year (December 2013: £16.0 billion), and up 15% compared to H1 2013 (30 June 2013: £14.8 billion). There was a significant increase in net client cash flow (‘NCCF’) from £0.2 billion in H1 2013 to £1.1 billion in H1 2014 and adjusted operating profit was double the previous year at £16 million (H1 2013: £8 million), driven by strong growth in funds under management.
Gross sales of £4.5 billion were 29% higher than the prior year (H1 2013: £3.5 billion) due to strong sales performance through UK third parties and improving sales penetration through Old Mutual Wealth. We also saw a strong improvement in our international markets following the restructuring and strengthening of global distribution teams. NCCF was strong in Europe and in Asia in H1 2014.
The company saw strong flows into three of its core capabilities:
- The Alternative investments desk had sales four times higher than last year. The Old Mutual Global Equity Absolute Return Fund performed particularly well and generated sales of £608 million.
- Sales in the UK Equity asset classes were 90% higher than prior year driven by strong flows into the Old Mutual UK Alpha Fund, managed by Richard Buxton. As at end July 2014, assets under management in this Fund were approximately £1.5bn.
- The Multi Asset Desk saw the Old Mutual Spectrum Fund range deliver £348 million of gross sales in H1 2014 and WealthSelect has net new sales of £160 million at H1 2014, with a further £65 million in July 2014.
Outflows were anticipated and were largely from low margin mandates via third party institutional channels occurring in the second quarter, including the loss of a £248 million segregated mandate and a further £153 million outflow from our divested Nordic business (H1 2013: £782 million).
Warren Tonkinson, Head of Global Distribution at Old Mutual Global Investors, comments: “We are pleased that the changes we implemented have continued to play a pivotal role in helping us grow a successful business. Indeed, our success over the past year has been widely recognised across our industry and resulted in us receiving the prestigious accolade of the Global Group of the Year, as well as winning both the North American and Global Equity & Income Fund award categories, at the 2014 Fund Manager of the Year Awards.
“We are now well placed for future expansion. We will continue to build on our successful UK experience and have firm plans to continue to expand into other international markets and invest in additional investment capabilities.”
Head of PR and Internal Communications, London + 44 20 7 332 7687
Notes for editors:
Old Mutual Global Investors:
Old Mutual Global Investors has grown strongly since its creation in August 2012 and now has assets under management of £17 billion*. The team consists of 183 industry professionals, including a team of 48 investment professionals. As part of Old Mutual Group it has a strong financial parent to support the activation of its business strategy. Old Mutual Global Investors is the asset management division of Old Mutual Wealth. To find out more information please go to: www.omglobalinvestors.com
Old Mutual Wealth:
Old Mutual Wealth, comprising Skandia and Old Mutual Global Investors, provides wealth management solutions such as investments, pensions and life assurance to help financial advisers manage their clients’ wealth. The business currently oversees £80.3 billion* in customer investments and has operations in the UK, Continental Europe and various international markets. Its strategy is to combine asset management with product and platform expertise, in order to grow further as a modern, integrated wealth management business that enables positive futures for its customers.
Old Mutual Wealth is a core part of Old Mutual plc, a leading international long-term savings, investment and protection Group. Based in London, it is trusted by more than 16 million customers across the world. For over 169 years, it has been serving the growing insurance and investment needs of local customers, companies and their advisers. Old Mutual’s vision is to become its customers’ most trusted partner, being passionate about helping them achieve their lifetime financial goals.
*as at 30 June 2014
Please remember that past performance is not a guide to future performance. Investment involves risks. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested.
Old Mutual Global Investors is the trading name of Old Mutual Global Investors (UK) Limited, Old Mutual Fund Managers Limited and Old Mutual Investment Management Limited. Old Mutual Global Investors (UK) Limited is registered in England & Wales under number 02949554, Old Mutual Fund Managers Limited is registered in England & Wales under number 01825772 and Old Mutual Investment Management Limited is registered in England & Wales under number 4227837. Authorised and regulated by the Financial Conduct Authority with FCA register numbers 171847, 1193240, 208543 respectively, VAT number 386 1301 59. OMGI 08/14/0033.