Skandia's profits rose 29% to £173m last year following the third quarter launch of its investment platform, Selestia Investment Solutions.
The provider’s assets under management rose 16% to £41.9bn but Skandia UK’s sales dropped 1% to £8.6bn.
Selestia and Skandia MultiFunds achieved £2.5bn in gross new business sales last year and a 9% rise in funds under management to £9.7bn.
Skandia says the market continues to move away from “old style, one size fits all with-profits funds” towards open-architecture and MultiManager investments. The statement echoes Resolution research on Tuesday, which shows 50% of advisers plan to boost their multi-manager exposure in 2008.
It also highlights distribution solely through advisers as the key to success.
Nick Poyntz-Wright, chief executive of Skandia UK and Offshore, says: “The industry is changing and the Retail Distribution Review is likely to accelerate this change but we believe financial advisers will remain the dominant distribution channel.
"The key focus for Skandia is to deliver products and services that enable advisers to meet the changing needs of their clients. We believe the platform and investment solutions we offer advisers meet this objective.”
Single premium pensions and trustee investment plans increased gross sales on the life and pensions platform by 7% to £3.3bn and funds under management by 11% to £18.4bn.
Meanwhile, Skandia Investment Management saw gross sales rise 8% to £1.3bn helped by the 2007 launch of the UK Strategic Best Ideas fund. Funds under management rose 6% to £5.1bn with the Best Ideas range now more than £750m in size.
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