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Skandia agrees outsourcing deal with IFDS and posts £2m profit

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Skandia has agreed a 20-year outsourcing deal with International Financial Data Services as the platform posted a £2m operating profit for the first half of the year.

The integration of IFDS administration with the Skandia platform will begin in 2016, with front office telephone and email contact teams remaining in-house.

Money Marketing revealed in February Skandia was in talks with IFDS, which provides administration on 60 per cent of UK mutual funds.

Skandia’s half-year results, published last week, show the platform made a £2m operating profit compared to a £1m for the same period last year. Sales were up 5 per cent from £2.2bn to £2.3bn. 

Net inflows rose 8 per cent from £1.2bn to £1.3bn, while funds under management on the platform rose 11 per cent from £22.6bn to £25bn.

Skandia slipped from second to third place in The Platforum’s AUA leaderboard last week after the platform decided to strip out legacy business from its assets under administration figures and report new business figures only.

Skandia has also pushed back the launch of its Select fund range, backed by 10 fund groups, to add a suite of model portfolios. The launch of the range, which had been expected in the autumn, is now set for early next year.

Plan Money director Peter Chadborn says: “It is a logical step for organisations to outsource. But there needs to be the flexibility to ditch the relationship if it is not working, so I am staggered Skandia would want to commit to such a long contract with IFDS.”

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