Buxton propels Old Mutual sales past £1bn

Net sales at Old Mutual Global Investors (OMGI) more than doubled to over £1 billion in the first quarter of 2014 compared to the same period last year as the manager continues to benefit from flows into Richard Buxton's UK Alpha fund.

OMGI reports that gross sales in the 12 months to 31 March rose 66% to £2.5 billion compared to £1.5 billion in the previous year while net sales jumped significantly from £100 million to £1.1 billion. Total assets under management also rose to a record high of £80.2 billion.

The acquisition of star manager Richard Buxton from Schroders last year helped to propel sales at OMGI with his UK Alpha fund, a Rated Fund on our sister website Money Observer, attracting over £1 billion of inflows in the period, while also helping to turn the languishing OMGI brand around.

A number of other funds also attracted strong inflows, including fellow Money Observer Rated Funds OMGI Global Equity - whose assets under management (AUM) rose 423% to £70.3 billion - and OMGI North American Equity which saw AUM swell 254% to 305.2 million in the same period.

OMGI says that sales were also facilitated by strong investment performance across the company, claiming that 44% of its core funds are top quartile over three years while 72% have outperformed their benchmark in the 12 months to 31 March.

The results mean that OMGI was the top selling fund group in the UK in terms of net retail sales, and number five by gross retail sales during the first quarter of 2014, which the firm itself said was "a remarkable jump from where the company was in 2012 and 2013."

Commenting on the results, chief executive of Old Mutual Global Investors Julian Ide said: "Since the creation of Old Mutual Global Investors in 2012 we have focused on delivering products and services that meet the needs of our clients. Over the last year we have also focused on positioning our company as a stand out brand in an already busy industry.

He added, "We believe that the first-quarter 2014 results clearly demonstrate that Old Mutual Global Investors is now considered to be one of the leading investment companies within our industry."