Skandia sales flat as profit drops

Skandia UK has reported gross sales remained flat in 2011, as overal funds under management shrank to £33.4 billion, decreasing by £500m.

The firm reported gross sales of £4.9 billion during 2011, the same level as 2010, with net client cash flow shrinking from £3.6 billion to £3.3 billion over the same period.

Overall funds under management decreased from £33.9 billion at the end of 2010, to £33.4 billion for 2011.

According to Skandia, adjusted operating profit, under international financial reporting standards (IFRS), dropped by £37m to £103m.

Peter Mann, chief executive officer at Skandia UK, says: “Market conditions were challenging for retail investors during 2011 so it is pleasing to continue to generate positive net client cash flow and healthy profits.

“2012 is set to be an important year for the financial services industry as we evolve towards RDR [retail distribution review] implementation and we are feeling very positive about the opportunities ahead.”

He adds: “Financial advisers are working hard on defining their RDR-ready customer propositions and Skandia Investment Solutions enables them to offer a number of options to suit a wide variety of customer needs via a single platform.”