View the article online at http://citywire.co.uk/new-model-adviser/article/a636043
Skandia platform to cut costs after £5 million loss
by Jun Merrett on Nov 21, 2012 at 11:55
Old Mutual Wealth is set to cut costs on the Skandia platform by half after it made a £5 million pound loss in the first half of 2012.
In an presentation to investors Mark Satchel, Old Mutual Wealth's chief financial officer, predicted that platform revenues as a proportion of the funds under management would fall from 52 basis points (bps) to around 40-45 bps in the future.
The presentation showed that revenues of 52bps of the platform’s £20.4 billion in funds under management were offset by expenses of 57 bps.
This resulted in a loss of £5 million, or 5 bps of £20.4 billion.
Skandia said it was targeting a cut in platform expenses by around half from 57 bps to 25-30 bps.
The £5 million loss for the first half of 2012 follows the £11 million loss the platform made in 2011 which it said was due in part to its investments for the retail distribution review.
News sponsored by:
Click here to watch a series of sponsored interviews with Jupiter's fund managers on the UK equity market.
Today's top headlines
More about this article:
More from us
- Skandia platform assets hit £21.8bn despite sales drop
- Skandia to cut 200 jobs
- Skandia platform makes £11m loss