Old Mutual Global Investors delivers strong results for 2013 Gross Sales up 68% and FUM increased by 16%
Old Mutual Global Investors delivered strong returns in 2013 with adjusted operating profit improved to £15 million from £2 million in 2012, gross sales increased 68% to £7.6 billion (2012: £4.5 billion), funds under management were up by 16% to £16 billion (December 2012: £13.8 billion) and global net sales were up at £0.7 billion. In the UK, OMGI was elevated to 2nd place in terms of net sales in The Pridham Report for 2013, a significant improvement compared to the same period in 2012 when the company was positioned 20th.
Improved market conditions, added consumer confidence and a shift from fixed income back into equities contributed to strong flows from third parties and Skandia’s UK Platform. Old Mutual Global Investors’ improved offering and continued strong investment performance – 44% of funds are in the first quartile over a three year period and a total of 66% of funds are above the median – helped deliver encouraging asset flows across the majority of the fund range, and in particular the Alternatives and Equities desks. The latter benefited from the high profile hires during the year of Richard Buxton, Errol Francis, Ed Meier and Rob James. By adding Richard and his team’s highly regarded and successful large cap investment capabilities alongside Old Mutual Global Investors leading UK Small and Mid -Cap, UK All Companies and UK Equity Income Teams, Old Mutual Global Investors established a market leading suite of long-only and long-short UK investment strategies.
Julian Ide, Chief Executive of Old Mutual Global Investors, comments: “We enjoyed a very successful and exciting year. The launch of our new brand in the first quarter and subsequent high profile sales and marketing campaigns certainly raised awareness of our company and provided a solid platform from which our new distribution team could engage with the market. Our focus on continuing to deliver the strong investment returns that our clients are accustomed to also played an important role in our success. Indeed, confidence across the whole company grew throughout the year and the arrival of new team members during the year has certainly helped increase our energy as they have all been an excellent cultural fit to our business. We also invested in improving our client servicing and operating platform to ensure that we have a solid foundation for the future growth of our company.
“As well as seeing strong flows of assets into the UK Alpha Fund to take this Fund to £1 billion*, we achieved strong funds under management growth across all of our investment desks. Of particular note was
- Old Mutual Global Equity Absolute Return Fund up 622% to £348 million
- Old Mutual North American Equity Fund up 248% to £236 million
- Old Mutual US Dividend Fund up 134% to £250 million
- Old Mutual UK Equity Income Fund up 74% to £82 million
- Old Mutual Monthly Income Bond Fund up 34% to £47 million
- Old Mutual Spectrum Funds up 29% to £2.07 billion.”
Paul Feeney, Chief Executive of Old Mutual Wealth, adds: “The strong results delivered by Old Mutual Global Investors clearly emphasise that we are well on the road to creating a market leading asset management business in Old Mutual Global Investors. The hires we have made this year are a signal of our ambition in that market as a key driver of our future growth alongside our investment platforms.
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Please note that this press release was issued at the same time as the press releases issued by Old Mutual plc and Old Mutual Wealth.
Head of PR and Internal Communications, London + 44 20 7 332 7687
Notes for editors:
1. Old Mutual Global Investors:
With assets under management of £16 billon*, Old Mutual Global Investors has grown strongly since its creation in August 2012. Old Mutual Global Investors is the asset management division of Old Mutual Wealth. The team consists of 174 industry professionals, including a team of 47 investment professionals. As part of Old Mutual Group it has a strong financial parent to support the activation of its business strategy. To find out more information please go to: www.omglobalinvestors.com
2. 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 £78.5 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 167 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 31 December 2013
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 02/14/0136.