July 2010

Skandia is preparing to close some of its older style policies to new business, in line with changing demands of customers and financial advisers preparing for the Retail Distribution Review’s (RDR) rules coming into force.

Advisers with clients invested in occupational pension schemes since before A-day (5th April 2006) should review these benefits now to ensure that the earnings information required to protect any pre A-day tax free cash entitlement above 25% remains available, says Skandia.

Sales of risk-rated funds and funds offering a degree of investment protection look set to soar over the next 12 months according to a survey of 500 financial advisers carried out by Skandia.

57% of financial advisers questioned by Skandia said they plan to outsource more of their fund selections over the next two years.

Surge in sales of cash funds and withdrawal from UK equity sector indicate risk aversion amongst investors

Apparent contradiction in behaviour as interest in Global Specialist sector also continues to rise, suggesting selective risk-taking and interest in niche opportunities

Absolute return fund re-enters Skandia’s top ten funds list

Over 330,000 people are in danger of missing the opportunity to cash in their with-profits bonds without penalty, saving themselves an average of £3000 each or £1bn in total over the next two and a half years, because of poor communications from product providers.