Skandia UK was able to increase underlying profits in the first six months of the year despite seeing mutual fund and UK life assurance sales fall more than 20% during the period.
Adjusted operating profit increased by 14% to £91m (IFRS), with reduced integration activity and significant tax benefits more than offsetting any reduction in asset based fees. Skandia UK mutual fund sales plunged 21% during the first half, falling from £1.29bn to £1.02bn. It attributed the decline to poor investor confidence in “one of the lowest ISA seasons on record”. It also recorded a decline in bonds sales, with changes to CGT leading to uncertainty over the continued suitability of bonds. Skandia UK says £1.1bn in net client inflows partially offset turbulence in world markets, w...
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