The Dublin-headquartered company said new business sales in the first half of this year were £212m, compared with £275m over the same six month period last year.
International Adviser recently reported ABI figures which showed a slow first quarter for offshore bond sales in the UK, with a general market decline of 25% year-on-year. Commentators said at the time, while the decrease in sales can be partly blamed on investor uncertainty, it may also be the case that advisers and clients may be considering alternatives to offshore bonds in response to the removal of commissions and greater transparency.
In a statement, L&G International said it believed the fall in sales was caused by “difficult conditions in the investment market in the first quarter, which weakened investor confidence and has had a significant impact on the UK offshore bond market”.
It added that sales of offshore bonds are expected to recover “once investment market confidence returns”.
Last week, Axa Wealth International said sales fell during the first half by 37%, although its AUM actually increased to £8bn.
Meanwhile, Skandia International today said sales of its offshore bonds had fallen 26% in the first half, from £1.5bn in 2011 to £775m this year.
While the slump in sales is not positive for the international market place, they are reflective of investor sentiment more generally.
According to the UK’s Investment Management Association which collates data from asset managers, retail fund sales in the first quarter were 38% down on the first quarter of 2011.
