Assets on the UK platform jumped 20% to £22.6bn (£18.8bn at 31 December 2011) which resulted in the UK platform recording an IFRS Adjusted Operating Profit of £2m for the full year.

IFRS Adjusted Operating Profit for Old Mutual Wealth as a whole during 2012 was £195m which includes the net effect of one off costs (£15m) associated with the cost cutting initiatives carried out during the year. Some £94m of this profit was recorded by Skandia in the UK and £68m from the Skandia International cross border markets.

The overall growth in assets over the year was driven by a positive net client cash flow of £2.0bn (2011: £2.4bn) and higher equity markets at the end of the period. At the same time, there has been a reduction of £1.1bn in assets attributed to the sale of the Finnish branch of Skandia Life Assurance Company Ltd which was completed during the year.

Old Mutual Wealth saw a drop in gross sales over the year from £12.1bn in 2011 to £11.9bn in 2012.  The UK platform contributed £4.1bn (2011: £4.9bn), resulting in positive net flows of £2.2bn.

During the period, Old Mutual Global Investors (OM Global Investors) was created from the merger of Old Mutual Asset Managers (UK) and Skandia Investment Group.  The combined business has some of the best regarded fund managers in the market and an exceptional track record of investment performance.

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Paul Feeney, chief executive of Old Mutual Wealth, said: "2012 saw us make a number of changes to our business but our core purpose has not changed – to enable positive futures for all of our customers.  To do that we are on a mission to offer not just wider investment choice but better investment choices – solutions for real people if you will.  To do that we must offer more than simply a transactional platform and our focus and strategy is to provide wealth solutions that can help financial advisers manage their client's wealth.

"In combining our two UK asset management businesses to create Old Mutual Global Investors we now have a leading single asset management presence in the UK. Old Mutual Global Investors offers the established alpha-generating capabilities of Old Mutual Asset Managers, alongside Skandia Investment Group's pioneering investment solutions. As one, this business is well positioned to be a driver of future growth.

"Financial advisers are and will remain our core distribution channel and we continue to work with them to bed in post RDR processes. Our key priority is to ensure we continue to support advisers in the post-RDR world by improving our technology and processes so that we can respond to their needs more quickly, and provide a variety of products and solutions that suit a diverse range of customer needs."