Old Mutual AM unit posts 60% jump in inflows
Old Mutual Global Investors saw net inflows jump by 60% to £1.6bn in the first half of the year, compared to the same time a year ago.
The asset manager of the Old Mutual Wealth group posted an increase of £27bn in funds under management, up by 9% on the start of the year.
Gross sales increased by 38% in H1 to £7bn, with strong sales into the Old Mutual Global Equity Absolute Return fund (GEAR), Old Mutual North American Equity fund, Old Mutual UK Specialist Equity fund and the Old Mutual Cirilium Portfolios range.
At H1 2016, investment performance at Old Mutual Global Investors showed 67% of single strategy funds above target over 3 years, compared to 67% at December 2015.
The largest absolute return fund, GEAR, has delivered 4.5% over three years and continues to outperform its peers, but is marginally below its target of 5%.
“GEAR continues to experience strong inflows indicating that client sentiment remains positive, as investors continue to look for alternative investment options delivering positive returns in the low interest rate environment,” the firm said in its latest financial results.
Performance of the Old Mutual UK Alpha fund has been below median for a while.
Despite this period of short-term underperformance, the fund “continues to be recognised by investors as a vehicle to achieve capital growth from UK equities and has delivered an annualised return of 9.4% since inception, compared to an average annual return of 2.5% from the FTSE All-Share,” Old Mutual said.
The Old Mutual Absolute Return Government Bond fund saw “minimal outflows” following changes made to the Bond team, due to differences in opinion on future strategy. The fund’s performance, however, has continued to improve, the group said.
Old Mutual Wealth recorded net inflows in the first half of 2016 of £3.2bn an increase of 39% from the same period in 2015.