07 November 2005

Surge in take-up of Sipps

Standard Life, which will present its flotation plans at a one-day roadshow in Edinburgh this week, is expected to report a continued surge in sales of self-invested personal pension (Sipp) business, up to more than £1.1bn since the launch less than a year ago.

The continued popularity of Sipps comes despite warnings about the way some are being sold, and Standard Life has called for greater regulation.

While third-quarter figures due out on Wednesday will be a boost to the life and pensions division, the health care market continues to be competitive. The acquisition of First Assist in August is unlikely to have had any effect on sales, but it will mean a rise in market share from fourth to third.

Standard Life Investments is enjoying its strongest period after recent mandate wins. It has record funds under management for both internal money and external contracts. At the interim results in August, overall group assets under management were £117bn, of which SLI is managing £107bn. This figure will have grown again due to the rise in the stock markets.

More here.