03 September 2011
Skandia International, the offshore business of Old Mutual Wealth Management, continued to grow sales and maintain positive net client cash flow during Q3 2011, despite volatile market conditions globally.
Gross life sales were up 24% to £554 million in Q3 2011 compared to the same quarter last year, driven by ongoing momentum from Europe and Asia. This sales growth was a result of very strong sales of single premium open architecture portfolio bond sales which were up 55% in Q3 2011 compared to 2010.
Strong Q3 sales took gross life sales to £1.5 billion for the first nine months of 2011 an increase of 4% on the same period in 2010. Net client cash flow (net sales) remained positive at £0.5 billion over the same period.
Funds under management decreased slightly by 6% since 31 December 2010 to £15.8 billion as at 30 September 2011. This compares to a fall of 14% for the MSCI world index over the same period.
Skandia International continues to develop its customer proposition and has recently announced a number of enhancements. The Skandia Life Ireland trust range was significantly upgraded during Q3, with the additional of the Discounted Gift Trust and Loan Trust solutions during August, complementing the existing Discretionary and Bare Trust services.
Royal Skandia also enhanced its trust offering by launching a Limited Liability Loan Trust in July whilst the Royal Skandia Trust Company launched an Enhanced Loan Trust and removed the annual fees for premiums exceeding £200K until 31.12.2011.
The benefits of these enhancements and Skandia International’s ongoing commitment to product innovation have been recognised by advisers and industry professionals, leading to nine prestigious industry awards (see full list below).
Steven Levin, chief executive at Skandia International, comments:
“Sales momentum has been encouraging in Q3 2011. Our customers continue to face uncertain stock markets and our products give them the flexibility to work with their financial advisers to manage their portfolios and switch investments in line with the level of risk they want to take. As a result we have seen significant demand for our open architecture offshore bonds and we have continued to enhance our range of trust solutions to ensure customers can take advantage of a wide range of tax planning opportunities.”
The list of awards:
Professional Adviser awards:
Best International Life Group
Best International Life Product
Best International Sales Team
International Adviser awards:
Best trust/estate planning product – Asia, for our Discounted Gift Trust
Best trust/estate planning product – UK offshore, for our Loan Trust
Best for adviser support/customer service – Middle East
Best online proposition – Middle East
Best online proposition – UK offshore
Best single premium investment product – Middle East, for our Executive Redemption Bond
This press release is for journalists only and should not be relied upon by financial advisers or customers.