AUMA and flows update

RNS Number : 4357Z

Standard Life Aberdeen plc

15 December 2017

 

Standard Life Aberdeen plc

AUMA and flows update

15 December 2017

Standard Life Aberdeen plc is publishing assets under management and administration (AUMA) information as well as an update on pro forma new business flows for the nine months to 30 September 2017:

	2017	2016
	£bn	£bn
Standard Life Aberdeen total AUMA at 1 January	647.6	586.6
Growth:  Aberdeen Standard Investments	(16.4)	(14.9)
Standard Life Pensions and Savings	6.3	4.5
Eliminations	(0.5)	(0.9)
	(10.6)	(11.3)
Mature:   Aberdeen Standard Investments	(11.7)	(10.9)
Standard Life Pensions and Savings	(3.2)	(3.1)
Eliminations	2.1	1.3
	(12.8)	(12.7)
India and China life net flows	0.4	0.2
Markets and performance	25.3	78.5
Corporate actions1	(3.7)	1.1
Standard Life Aberdeen total AUMA* at 30 September	646.2	642.4

*We have redefined our measure of AUMA to exclude £10.7bn (31 December 2016: £11.6bn) of corporate assets which do not generate revenue.

Total AUMA was stable at £646.2bn (31 December 2016: £647.6bn). Within total AUMA, Aberdeen Standard Investments assets under management were £569.7bn (31 December 2016: £580.6bn) while Standard Life Pensions and Savings assets under administration increased to £182.3bn (31 December 2016: £171.6bn).

Within our growth channels, net outflows have reduced to £10.6bn (2016: £11.3bn). Aberdeen Standard Investments growth channel net outflows increased by £1.5bn with an increase of £4.5bn in outflows from our Institutional channel, where market conditions remain challenging, partly offset by a £3.0bn improvement in outflows from the Wholesale channel.

We attracted record growth channel net inflows into Standard Life Pensions and Savings which increased by £1.8bn (40%), further demonstrating the benefits of diversification as well as our investment company business model. Combined AUA across our retail platforms, Wrap and Elevate, now exceed £50bn, benefiting from industry-leading net inflows of £5.4bn. In addition, Parmenion net flows amounted to £1.0bn with AUM now £4.0bn. Within our mature books of business net outflows were stable at £12.8bn.

We are seeing good momentum across a wide range of products with gross inflows across the Group of £58.6bn (2016: £60.0bn). We continue to see particularly strong demand for emerging market debt and multi-asset solutions such as MyFolio and our diversified growth funds. We have also continued to innovate, launching a number of new funds including the Global Equity Impact Fund, the European Logistics Income investment trust and the Secured Credit Fund - all designed to meet the growing demand for "new active" investment solutions.

Martin Gilbert and Keith Skeoch, Chief Executive Officers, commented:

"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.

"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. 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."

Unless otherwise stated, all figures reported are for the nine months ending 30 September 2017. All flow figures and comparatives have been presented on a pro forma² basis.

For further information please contact:

Institutional equity investors		Retail equity investors
Jakub Rosochowski*	0131 245 8028 / 07515 298 608	Link Asset Services*	0345 113 0045
Neil Longair*	0131 245 6466 / 07711 357 595
Chris Stewart*	0131 245 2176 / 07525 149 377
Media		Debt investors
Katy Hetherington*	0131 245 2283 / 07841 344 374	Stephen Percival*	0131 245 1571
Barry Cameron*	0131 245 6165 / 07712 486 463	Nick Mardon*	0131 245 6371
James Thorneley*	0207 463 6323 / 07768 556 334
Tulchan Communications	0207 353 4200

*Calls may be monitored and/or recorded to protect both you and us and help with our training. Call charges will vary.

Media

A conference call for the media will take place on Friday 15 December at 07:30am (UK time). Participants should dial [phone] and quote Standard Life Aberdeen plc assets and flows update. A replay facility will be available for seven days. To access the replay please dial [phone] followed by the pass code 9487145.

Investors and analysts

A conference call for analysts and investors will take place on Friday 15 December at 08:15am (UK time). Participants should dial [phone] and quote Standard Life Aberdeen plc assets and flows update. A replay facility will be available for seven days. To access the replay please dial [phone] followed by the pass code 1173606#.

Notes to editors

1. Corporate actions in the nine months to 30 September 2017 include the closure of an uneconomic multi-manager fund range and the rationalisation of the US fixed income business previously reported by Aberdeen Asset Management. The comparative period included the decision to exit low margin property management business as well as the benefit from the acquisition of Parmenion and the increased stake in HDFC Life.

2.  Pro forma results for the Group are prepared as if Standard Life and Aberdeen had always been merged and are included in these results to assist in explaining trends in financial performance.

LEI number of Standard Life Aberdeen plc: 0TMBS544NMO7GLCE7H90

Classification: 3.1. Additional regulated information required to be disclosed under the laws of a Member State

Standard Life Aberdeen plc is registered in Scotland (SC286832) at Standard Life House, 30 Lothian Road, Edinburgh EH1 2DH.

www.standardlifeaberdeen.com      © 2017 Standard Life Aberdeen, images reproduced under licence. All rights reserved.  

Assets under management and administration flows

9 months ending 30 September 

	Gross inflows					Redemptions				Net flows
	2016 £bn			2017 £bn		2016 £bn		2017 £bn		2016 £bn		2017 £bn
Aberdeen Standard Investments:
Equities	11.0			11.9		(18.5)		(17.2)		(7.5)		(5.3)
Fixed income	6.9			5.4		(11.6)		(8.1)		(4.7)		(2.7)
Multi-asset	13.2			10.1		(13.9)		(15.7)		(0.7)		(5.6)
Private markets and alternatives	1.1			1.2		(2.3)		(1.9)		(1.2)		(0.7)
Real estate	3.6			2.5		(4.5)		(3.4)		(0.9)		(0.9)
Quantitative	0.3			0.1		(0.4)		(0.6)		(0.1)		(0.5)
Cash/liquidity	6.6			5.7		(6.4)		(6.4)		0.2		(0.7)
Growth	42.7			36.9		(57.6)		(53.3)		(14.9)		(16.4)
Standard Life Pensions and Savings	2.7			2.5		(4.0)		(4.6)		(1.3)		(2.1)
Third party strategic partner life business	8.3			8.8		(17.9)		(18.4)		(9.6)		(9.6)
Mature	11.0			11.3		(21.9)		(23.0)		(10.9)		(11.7)
Total assets under management flows anagementAberdeen Standard Investments	53.7			48.2		(79.5)		(76.3)		(25.8)		(28.1)
Standard Life Pensions and Savings:
UK Retail		5.8		9.8		(3.1)		(4.8)		2.7		5.0
UK Workplace		3.2		3.3		(1.8)		(2.2)		1.4		1.1
Europe growth		1.0		0.9		(0.6)		(0.7)		0.4		0.2
Growth		10.0		14.0		(5.5)		(7.7)		4.5		6.3
UK Mature Retail		0.5		0.4		(3.0)		(3.0)		(2.5)		(2.6)
Europe mature		0.5		0.5		(0.4)		(0.4)		0.1		0.1
Spread/risk		0.2		0.2		(0.9)		(0.9)		(0.7)		(0.7)
Mature		1.2		1.1		(4.3)		(4.3)		(3.1)		(3.2)
Total assets under administration flows		11.2		15.1		(9.8)		(12.0)		1.4		3.1
India and China life		0.5		0.9		(0.3)		(0.5)		0.2		0.4
Eliminations		(5.4)		(5.6)		5.8		7.2		0.4		1.6
Total AUMA flows		60.0		58.6		(83.8)		(81.6)		(23.8)		(23.0)
	Gross inflows					Redemptions				Net flows
	2016 £bn			2017 £bn		2016 £bn		2017 £bn		2016 £bn		2017 £bn
Analysis of growth channels:
Institutional		22.2		17.5		(32.6)		(32.4)		(10.4)		(14.9)
Wholesale		19.2		17.7		(24.4)		(19.9)		(5.2)		(2.2)
Wealth/Digital		1.3		1.7		(0.6)		(1.0)		0.7		0.7
Aberdeen Standard Investments flows		42.7		36.9		(57.6)		(53.3)		(14.9)		(16.4)
UK Retail		5.8		9.8		(3.1)		(4.8)		2.7		5.0
UK Workplace		3.2		3.3		(1.8)		(2.2)		1.4		1.1
Europe growth		1.0		0.9		(0.6)		(0.7)		0.4		0.2
Standard Life Pensions and Savings flows		10.0		14.0		(5.5)		(7.7)		4.5		6.3
Eliminations		(2.7)		(3.1)		1.8		2.6		(0.9)		(0.5)
Total growth channels flows		50.0		47.8		(61.3)		(58.4)		(11.3)		(10.6)

Assets under management and administration

9 months ending 30 September 2017

	1 Jan 2017 £bn	Gross inflows £bn	Redemptions £bn	Net flows £bn	Markets and performance £bn	Corporate actions £bn	30 Sept 2017 £bn
Aberdeen Standard Investments:
Equities	97.4	11.9	(17.2)	(5.3)	10.7	-	102.8
Fixed income	55.1	5.4	(8.1)	(2.7)	(0.5)	(1.3)	50.6
Multi-asset	79.1	10.1	(15.7)	(5.6)	0.9	(2.4)	72.0
Private markets and alternatives	25.7	1.2	(1.9)	(0.7)	(0.2)	-	24.8
Real estate	27.5	2.5	(3.4)	(0.9)	1.6	-	28.2
Quantitative	2.4	0.1	(0.6)	(0.5)	0.2	-	2.1
Cash/liquidity	21.9	5.7	(6.4)	(0.7)	0.5	-	21.7
Growth	309.1	36.9	(53.3)	(16.4)	13.2	(3.7)	302.2
Standard Life Pensions and Savings	90.2	2.5	(4.6)	(2.1)	2.3	-	90.4
Third party strategic partner life business	181.3	8.8	(18.4)	(9.6)	5.4	-	177.1
Mature	271.5	11.3	(23.0)	(11.7)	7.7	-	267.5
Total assets under management	580.6	48.2	(76.3)	(28.1)	20.9	(3.7)	569.7
Standard Life Pensions and Savings:
UK Retail	62.9	9.8	(4.8)	5.0	3.7	-	71.6
UK Workplace	37.4	3.3	(2.2)	1.1	0.8	-	39.3
Europe growth	10.8	0.9	(0.7)	0.2	0.5	-	11.5
Growth	111.1	14.0	(7.7)	6.3	5.0	-	122.4
UK Mature Retail	34.9	0.4	(3.0)	(2.6)	2.5	-	34.8
Europe mature	9.5	0.5	(0.4)	0.1	0.2	-	9.8
Spread/risk	16.1	0.2	(0.9)	(0.7)	(0.1)	-	15.3
Mature	60.5	1.1	(4.3)	(3.2)	2.6	-	59.9
Total assets under administration	171.6	15.1	(12.0)	3.1	7.6	-	182.3
India and China life	4.6	0.9	(0.5)	0.4	0.2	-	5.2
Eliminations	(109.2)	(5.6)	7.2	1.6	(3.4)	-	(111.0)
Total AUMA	647.6	58.6	(81.6)	(23.0)	25.3	(3.7)	646.2
	1 Jan 2017 £bn	Gross inflows £bn	Redemptions £bn	Net flows £bn	Markets and performance £bn	Corporate actions £bn	30 Sept 2017 £bn
Analysis of growth channels:
Institutional	202.4	17.5	(32.4)	(14.9)	8.8	(1.3)	195.0
Wholesale	96.9	17.7	(19.9)	(2.2)	4.2	(2.4)	96.5
Wealth/Digital	9.8	1.7	(1.0)	0.7	0.2	-	10.7
Aberdeen Standard Investments	309.1	36.9	(53.3)	(16.4)	13.2	(3.7)	302.2
UK Retail	62.9	9.8	(4.8)	5.0	3.7	-	71.6
UK Workplace	37.4	3.3	(2.2)	1.1	0.8	-	39.3
Europe growth	10.8	0.9	(0.7)	0.2	0.5	-	11.5
Standard Life Pensions and Savings	111.1	14.0	(7.7)	6.3	5.0	-	122.4
Eliminations	(19.0)	(3.1)	2.6	(0.5)	(1.1)	-	(20.6)
Total growth channels	401.2	47.8	(58.4)	(10.6)	17.1	(3.7)	404.0

 

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