Skandia platform targets major cost cuts after fresh H1 loss

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Old Mutual Wealth is planning to turn around its Skandia platform by halving costs as a proportion of FUM after the business made a £5m loss in the first half of 2012.

Old Mutual Wealth (OMW) chief financial officer Mark Satchel has revealed to investors the platform business sustained a pre-tax loss equivalent to five basis points of FUM (£10.2m) on an annualised basis. As of 30 June FUM stood at £20.4bn, meaning a loss of £5.1m in H1 (excluding protection business). Skandia UK chief executive Peter Mann said this week that OMW is "in a dominant position in the UK retail market" and has the platform, relationships and propositions that are "fit for the future". But the group is cautious over the prospects of future revenue growth for its platfor...

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