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Abbey wrap takes more than 600m

Abbey says its wrap has taken over 600m in new money this year and the service remains core to the business despite persistent rumours that it is set to close.

The firm says the rumours are “unhelpful” and new parent Banco Santander sees the wrap as a central pillar of its distribution strategy.

James Hay Sipp managing director Jan Regnart says the 600m taken this year comp-rises cash-only new business and is higher if in-specie transfer business is factored in.

Fellow wrap service Transact says it has taken 500m in new money this year taking its total assets under administration to 1.5bn.

Abbey’s total wrap assets are more difficult to determine as the figure is bundled in with James Hay’s total assets under administration- which inc-ludes all of its Sipp assets.

This figure comes in at 10bn, but Regnart admits the vast majority of this is old Sipp business.

Transact managing director Ian Taylor says: “Wrap has moved from being a slightly left-field idea being taken up by early adopters to something everyone is talking about. There has been a significant shift in market psychology on wrap.”

Regnart says: “No, the wrap is not dead and the rumours are unhelpful. It is a major part of Abbey’s strategy post-A-Day and we have taken around 600m this year in cash only new business.

“We are very, very keen on it and it is very important to Abbey and to Banco Santander.”

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