Standard Life’s full year results for 2016 show that the company is making “good progress towards creating a world-class investment company”, according to chief executive Keith Skeoch.
Standard Life increased assets under administration by 16 per cent to GBP357.1 billion with modest net outflows of GBP2.6 billion, representing less than 1 per cent of opening assets, driven largely by our mature books of business
Growth channels assets under administration are up 20 per cent (up 132 per cent over the last five years to GBP237.6 billion) driven by gross inflows of GBP38.6 billion, net inflows of GBP4.1 billion, the acquisition of Elevate and positive market movements.
Institutional and wholesale AUM is up 11 per cent to GBP137.1 billion benefiting from product and client diversification.
The company saw institutional net inflows of GBP1.1 billion and wholesale net outflows of GBP1.7 billion in what it describes as “the most challenging market for the UK mutual fund industry for over 20 years”.
Gross inflows of GBP27.7 billion (2015: GBP30.5 billion) with lower demand for GARS were partly offset by a 30 per cent increase in gross inflows to GBP17.5 billion (net inflows GBP3.7 billion) into a broad range of other products.
Workplace and retail AUA is up 33 per cent to over GBP100 billion benefiting from net inflows of GBP5.4 billion (2015: GBP5.8 billion) and the acquisition of Elevate, while third party funds are above their benchmark over one year by 20 per cent; three years by 76 per cent; and five years by 88 per cent.
Skeoch (pictured) says: “Standard Life continues to make good progress towards creating a world-class investment company. We have increased the pace of strategic delivery, against a backdrop of volatile investment markets, with growth in assets, profits, cash flows and returns to shareholders.
“Despite industry headwinds, we are benefiting from our strengthening global brand and strong long-term relationships with a well-diversified range of clients and customers. The acquisition of Elevate has strengthened our leading position in the advised platform market while the increase in the stake in HDFC Life and the proposed combination with Max Life will increase our exposure to the attractive and fast growing Indian market.
“We are already seeing the benefits of targeted investments to further our diversification agenda, including the success of our newer investment solutions, and the sharpened focus on operational efficiency. This increased pace of strategic delivery will ensure that we continue to meet changing client and customer needs, and generate growing and sustainable returns for our shareholders.”
