January 2011

£15 billion held by almost 500,000 investors in with-profits bonds will reach its tenth anniversary during 2011, triggering a penalty free exit period for many of them.  A large number of with-profits bonds have exit penalties, called market value reductions (MVRs), but analysis by Skandia shows that around a third of them have a penalty free exit period on or after the ten year anniversary.  This means £5 billion can be withdrawn this year without penalty and investors should review their investments now to decide whether to take advantage of this opportunity

EU risk scores should replace spurious fund descriptions

New data from Skandia’s Platformwatch due diligence tool shows that the single most important consideration when evaluating platforms is how financially secure the platform provider is, with a total of 87% of advisers rating it as an important consideration and the vast majority of these (77%) saying it is a crucial consideration.

UK investors moved their money out of cash and UK fixed interest investments during 2010 choosing to invest instead in overseas equities, particularly emerging markets and global specialist funds.

Skandia UK’s gross sales broke through £6 billion during 2010, taking Skandia’s overall share of the life, pension and investment market to a record high of 7%* for the nine months to end September 2010.

Skandia today announces the launch of a series of online videos for financial advisers and customers. The videos are designed to help consumers and advisers get a better understanding of platforms and how they can help put people in control of their finances, as well as specifically helping advisers to consider how they might segment the service they offer to different types of customers.