Skandia says results prove platform is strong

Pay increase1Skandia UK says net inflows of £1.8 billion (€2 billion) in the first nine months of 2011 prove the strength of its retail platform, which it says will be increasingly important as the UK adopts the Retail Distribution Review (RDR).

When it comes into effect at the end of 2012, the RDR will lay down new rules for financial advisers, including banning them from charging commission.

Skandia UK said its overall gross sales of £4.9 billion for the first nine months were “consistent” with the previous year, but said gross sales from the Skandia Investment Solutions platform were up 7% to £4 billion. The firm says it is the largest retail investment platform operator in the UK.

Funds under management have declined 5% over the nine months to £32 billion, which Skandia compares with a 13% decline in the FTSE 100 over the same period.

“We continue to see strong net sales via the Skandia Investment Solutions platform, despite industry sales retreating overall,” said Peter Mann, chief executive at Skandia UK. “This is a reflection of the growing importance of platforms for retail fund sales and clear evidence that platforms are set to dominate the sales charts through the transition to the post RDR world.”

©2011 funds europe