Old Mutual saw a net outflow of £2.6bn in the first quarter of the year, although assets under management edged up and Skandia saw growth in new business volumes.
In its interim report for the three months to 31 March, the group said it saw AUM grow 1% from December 2010, rising to £303.1bn.
The US asset management business saw an outflow of £3.7bn. However, emerging market fund sales climbed 13% to £115m, and the firm’s UK platform saw a 6% uptick in gross inflows to £1.4bn.
Julian Roberts, group chief executive, said he was pleased with the group’s ‘steady’ performance. "This has been a quarter of steady operational performance by the group, building on the momentum we established in 2010. We are continuing to see strong growth in emerging markets, and in our UK platform business.
"We are continuing to make good progress in delivering the group strategy, with initiatives underway at each business unit to reduce costs, improve margins and deliver improved returns on equity in line with our stated targets.
"We announced the completion of the sale of US Life on 7 April 2011. This represents another significant step in simplifying the group and results in a substantial improvement to our risk profile."
Meanwhile Skandia UK, part of the Old Mutual group, has reported a 14% increase in funds under management in the first quarter compared to the previous year.
AUM stood at £34.5bn at the end of Q1, driven by investment returns and a 5% rise in net sales to £554m.
The group said the Skandia Investment Solutions platform was the primary driver of growth, seeing AUM up 34% to £17.7bn. Last year as a whole saw record new business volumes on the platform.
Skandia added it is ready to develop its new charging structure to accommodate either cash or unit rebates depending on FSA final rules. It reiterated its view that cash rebates have the potential to create confusion for customers around how much they are paying for both the platform and advice.
“2010 was a record year for Skandia UK and that momentum has carried through into the first quarter of 2011," said chief executive Peter Mann. "We are seeing significant demand for our platform services and we believe this is set to continue as advisers evolve their business models in preparation for the new adviser charging rules that require customer focused investment services with clear and straightforward charging structures."
“The RDR is all about improving outcomes for customers and platforms are set to be the dominant distribution channel for long term investments following the RDR. It is therefore crucial the platform consultation, and particularly the debate around rebates, produces an outcome that is in the best interests of customers."
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