Royal Skandia saw a 55% increase in new business in the third quarter of 2005, despite Old Mutual's ...
Royal Skandia saw a 55% increase in new business in the third quarter of 2005, despite Old Mutual's attempted takeover of parent company Skandia.
Richard Rogers, director of international sales at Royal Skandia, said: "A couple of new distributors we were talking to and have not dealt with before have said they want to wait to see what happens with the possible takeover before giving us business.
"But there has been no effect on business from other distributors. Indeed, new business grew by 55% in the third quarter over the same period in 2004."
Rogers added new business grew in all regions but the biggest expansion has come in the UK. The sales increase in the UK has been driven by tax, especially the desire to mitigate inheritance tax. "There has been strong demand particularly for discounted gift trusts," he said.
Another region highlighted by Rogers is the Middle East. "I never thought I would say it is one of the strongest growing regions because of the decline in the number of advisers, but Middle East institutions have been increasingly selling third-party products, which has offered us opportunities."
Rogers added that inflows into portfolios managed by Skandia Investment Management (SIML) have been outnumbering those into single funds within its offshore bonds by more than two to one.
"The shift in demand to the manager of managers portfolios is a result of the three-year bear market," said Rogers.
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