View more on these topics

Standard slashes equity content of w-p fund to 50 per cent

Standard Life has cut the equity content of its with profits fund by £7.5bn, resulting in an equity backing ratio for the fund of around 50 per cent.

The move out of equities was spelt out alongside the life office&#39s results published today for the 12 months to November 2003.

It says it has available assets on a statutory basis of £4.6bn up from £4.2bn in 2002 and says this is 2.2 times the required minimum margin. The latest figures were submitted to the FSA on February 15.

Standard says the realistic basis balance sheet calculations on which these figures are based is likely to be refined further before the release of next year&#39s figures.

The life office says its fund for future appropriations is £4.5bn up from £3.2bn in 2002.

The company has also set out plans to raise £750m of hybrid capital to support future growth but says this process is unlikely to begin until the second quarter.

Group chief executive Sandy Crombie says: “My aim as chief executive is to secure Standard Life&#39s position as a leader in the UK financial services industry and deliver greater value for members. On the new regulatory reporting basis, and following a series of management actions, we expect to report that Standard Life will show a realistic surplus of more than £4bn.

“This should reassure both policyholders and bondholders that we have sufficient capital to support our business.”

“Some of the decisions we have taken over the last six months have been difficult ones.”


Bankhall claims direct regulation only way to gain true independence

Bankhall has hit out at mortgage networks, saying that they limit consumer choice and should not be seen as a long-term solution by brokers. The firm believes that direct authorisation is preferable to appointed representative status in the long term. It says the only way to achieve true independence, which is in the best interests […]


“No, there are other factors to take into account when choosing with-profits bonds.” Susan Brassey, Susan Brassey Independent Financial Consultant “I would consider it more but I have a feeling with-profits will take a year or so to get back to normal.” Edwin Kelly, Edwin Kelly & Co “A guarantee has got to be comforting […]

A new waive of deals wipes out fees

Witan is offering investors free share dealing on all lump-sum Isa investments into the £1.35bn trust until April 5.The offer would bring a saving of around£70 for investors using their full £7,000 maxi Isa allowance and means that investors will only pay stamp duty – levied at 0.5 per cent – during the Isa season. […]

Julian Gibbs

I very rarely recommend enterprise investment schemes because the majority of them are only for speculative investors. However, I have discovered one, Johnson Cod 1, which looks to me far less risky than most. The investment is in farmed cod managed by Johnson Sea Farms and based in Shetland. Johnson Sea Farms is the acknowledged […]

The future of active management is now

Fees under pressure. Regulatory moves against closet indexers. Rapid advances in financial technology. Shifting sentiment among investors. Such mounting challenges have led to widespread speculation about active management’s shrinking future. But a closer look inside intelligent portfolio construction today tells a story of expanding roles, added value, and innovative risk-adjusted, lower-cost solutions. Four investment experts […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm