April 2010

Analysis of Skandia’s Spectrum funds on their second anniversary shows that all funds are in line with their volatility targets and have delivered what advisers and investors would have been expecting.

Skandia today launches a new online due diligence service via www.skandiaplatformwatch.co.uk which is designed to help financial advisers address the most challenging issues they face when carrying out due diligence analysis of platforms.

Skandia UK today announces that Peter Mann has been appointed chief executive officer with effect from 1st May 2010, subject to FSA approval. The appointment comes following the decision by Nick Poyntz-Wright to leave the business.

Risk rated funds with set volatility targets are increasing in popularity and will take the place of Active, Balanced, and Cautious (ABC) funds within the next five years, say the majority of advisers.

Sixty-two per cent of financial advisers who currently use platforms have carried out a formal due diligence analysis of the different services, suggesting that further progress needs to be made to meet FSA guidance. Ensuring that the platform being recommended is suitable for each investor needs to be a key focus for advisers, warns Skandia, and there is clear indication that platform due diligence is set to become an increasingly important issue for advisers.

A total ban on platform rebates is likely to have severe unintended consequences and could result in poorer outcomes for retail investors, the exact opposite of what the Retail Distribution Review is trying to achieve. Preventing rebates being passed back to consumers would negate all current platform charging structures and is not necessary in order to deliver the transparency required by the RDR.

80% of advisers believe that controlling risk is more important than maximising returns when recommending funds to clients. This was the key finding of a survey of 1,428 financial advisers and indicates that maintaining a portfolio in line with an investor’s risk appetite is of paramount importance to them.

Investors are continuing to test the investment waters by putting more of their money into more adventurous sectors at the expense of UK Fixed Interest funds, according to the latest Skandia Investment Trends analysis. 

Skandia saw a closing gap between fixed interest and equity fund sales in the final rush of ISA season, in further signs that investor confidence is growing.