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Standard Life Aberdeen outflows continue after merger

Standard Life Aberdeen outflows continue after merger
 

Standard Life Aberdeen (SLA) has seen total assets under management and administration largely stay flat over the year at £646.2 billion, reducing net outflows in its investment business which had plagued both companies prior to their merger.

However, total outflows across the company were up to £23.8 billion from £23 billion in 2016.

Martin Gilbert (pictured right) and Keith Skeoch, chief executive officers, stated: ‘‘While the combined business has experienced net outflows, these were in line with our expectations given the asset classes affected and the structural outflows from our lower margin mature books. Nevertheless the momentum in our business is good with £58.6bn of gross inflows during the period.

In a trading statement covering the nine months to 30 September - the first one as a combined business - the firm said that while its pensions and savings arm saw assets increase to £182.3 billion from £171.6 billion, its investment business Aberdeen Standard Investments, saw it decrease from £580.6 billion to £569.7 billion, down 2%.

Net outflows have reduced to £10.6 billion, £1.3 billion lower than the previous year. This was a combination of an increase in outflows from Aberdeen Standard Investments’ growth and institutional channels of £1.5 billion and £4.5 billion respectively. This was offset partly by a £3 billion reduction in outflows from the wholesale channel.

Across its investment platforms for financial advisers, Wrap and Elevate, total assets exceeded £5o billion, with inflows of £5.4 billion. Assets on the Parmenion platform increased by £1 billion to £4 billion.

The firm said it was seeing especially strong demand for its emerging market debt and multi-asset funds such as MyFolio and diversified growth funds.

Gilbert and Skeoch added: 'Standard Life Aberdeen is making good progress towards creating a world-class investment company. The integration of Aberdeen Standard Investments is on track and we are delighted with the way the teams are coming together to deliver for clients.

'We continue to innovate, launching new funds with strong backing from clients and winning new mandates across a wide range of investment strategies.

‘Standard Life, our pensions and savings business has had record flows year to date demonstrating further strength and diversity of our business. The successful lPO of HDFC Life in India and our recent registration as a private securities fund manager in China, have further strengthened our business. We remain confident of delivering long-term value for our clients, our people and our shareholders.’

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