Q1 AUA and flows update

RNS Number : 6137L
Standard Life plc
29 April 2015
 



Standard Life plc      

 

2015 Q1 AUA and flows update

29 April 2015

 

 

Strong demand and investment performance driving growth

·   Assets under administration1 up 5% to £311.9bn driven by strong net inflows and positive market movements

·   Particularly strong third party net inflows and investment performance driving 5% increase in Standard Life Investments total AUM to £258.4bn:

o Third party net inflows (excl. strategic partner life business) of £3.7bn

o 73% of net inflows2 from outside the UK as we continue to expand our global reach

o Third party AUM3 funds ahead of benchmark over 1 year: 73%; 3 years: 94%; and 5 years: 89%

·   Continued momentum in our UK business with retail and workplace fee AUA up 6% to £108.5bn driven by net inflows of £1.5bn into our retail new and workplace propositions and positive market movements:

o Wrap platform, including £1bn of net inflows (up 16%), driving growth in retail new AUA to £40bn

o Regular contributions into workplace pensions up 16% year-on-year with AUA now £34bn

o Added 60,000 new savers through auto enrolment, 620,000 since auto enrolment began

David Nish, Chief Executive, commented:

"Standard Life has made a good start to 2015 benefiting from strong investment markets as we continue to focus on providing value for our customers, clients and shareholders. We have increased the assets that we administer on behalf of our customers to £312bn helped by strong demand for our propositions. We completed the disposal of our Canadian business and returned £1.75bn of value to shareholders.

"Standard Life Investments now actively manages almost £260bn of assets across the globe driven by consistently strong investment performance and particularly strong third party net inflows, benefiting from high demand for our leading suite of multi-asset investment solutions. We are continuing to see the benefits of our expanding distribution capabilities and strategic relationships with 73% of net inflows from outside the UK and 70% of net inflows through the wholesale channel.

"Our UK fee based propositions continue to build momentum. Our Wrap platform saw record quarterly net inflows and in our workplace business regular contributions were up 16% year-on-year as we continue to see demand for our auto enrolment solutions, with a further 60,000 savers joining schemes we administer. The strength of our propositions, investment solutions and market positioning means we are well placed to deal with the new pensions regulations and to support customers as saving for their futures becomes increasingly front of mind.

"In Europe we continue to increase focus on unit linked business in Germany while in Asia we welcome the changes to foreign direct investment limits in India.

"We remain very well positioned to deliver ongoing growth. We have the products, expertise and proven investment performance to help our customers and clients to save and invest, so that they can look forward to their financial futures with confidence."

Unless otherwise stated, all figures are reported

on a continuing basis1 for the three months ended 31 March 2015

 

 

 

Assets and flows

Group assets under administration - three months ended 31 March 2015


Fee (F)

Spread/risk (S/R)

 Other (O)

Opening AUA at

1 Jan 2015

Gross

flows

Redemptions

Net

flows

Market

and other

movements

Closing

AUA at

31 Mar 2015


£bn

£bn

£bn

£bn

£bn

£bn

Total fee


268.6

 10.4

(7.4)

 3.0

 10.7

 282.3

Total spread/risk


16.1

 0.1

(0.3)

(0.2)

 0.6

 16.5

Total other


11.9

 0.2

(0.1)

 0.1

 1.1

 13.1

Total AUA


 296.6

 10.7

(7.8)

 2.9

 12.4

 311.9

By business:








Standard Life Investments








Third party (excl. strategic partner life business)

 117.5

7.9

(4.2)

3.7

4.2

125.4

Third party strategic partner life business


 43.8

-

(1.3)

(1.3)

2.2

44.7

Standard Life Investments total third party

F

 161.3

7.9

(5.5)

2.4

6.4

170.1

UK








UK retail new fee business


 37.3

 1.6

(0.7)

 0.9

 1.7

 39.9

UK retail old fee business


 33.5

 0.2

(0.7)

(0.5)

 1.6

 34.6

Workplace4


 32.0

 1.0

(0.4)

 0.6

 1.4

 34.0

UK retail and workplace4 fee

F

102.8

 2.8

(1.8)

 1.0

 4.7

 108.5

Conventional with profits

F

 2.1

-

(0.2)

(0.2)

-

 1.9

Annuities

S/R

 15.5

 0.1

(0.3)

(0.2)

 0.6

 15.9

Assets not backing products

O

 7.7

-

-

-

 0.7

 8.4

UK total


128.1

 2.9

(2.3)

 0.6

 6.0

 134.7

Europe








Fee

F

 17.2

 0.6

(0.3)

 0.3

 0.5

 18.0

Spread/risk

S/R

 0.6

-

-

-

-

 0.6

Europe total


 17.8

 0.6

(0.3)

 0.3

 0.5

 18.6

UK and Europe total


 145.9

 3.5

(2.6)

 0.9

 6.5

 153.3

Asia and Emerging Markets








Wholly owned

F

 0.4

-

-

-

 0.1

 0.5

Joint ventures

O

 2.1

 0.2

(0.1)

 0.1

 0.1

 2.3

Asia and Emerging Markets total


 2.5

 0.2

(0.1)

 0.1

 0.2

 2.8

Other corporate assets

O

 2.5

-

-

-

 0.3

 2.8

Consolidation and eliminations5

F/O

(15.6)

(0.9)

 0.4

(0.5)

(1.0)

(17.1)

Group AUA - continuing operations


 296.6

 10.7

(7.8)

 2.9

 12.4

 311.9

Standard Life Investments assets under management - three months ended 31 March 2015




Opening AUM at

1 Jan 2015

Gross

flows

Redemptions

Net

flows

Market

and other

movements

Closing

AUM at

31 Mar 2015



£bn

£bn

£bn

£bn

£bn

£bn

Third party AUM (excl. Strategic partner life business)

UK


75.5

3.8

(2.8)

1.0

3.6

80.1

Europe

 11.3

1.6

(0.4)

1.2

(0.4)

12.1

North America


 8.1

1.1

(0.3)

0.8

0.6

9.5

Asia Pacific


2.0

0.4

(0.2)

0.2

0.2

2.4

India


6.1

0.5

-

0.5

(0.1)

6.5

Ignis


14.5

0.5

(0.5)

-

0.3

14.8

By geography of client

117.5

7.9

(4.2)

3.7

4.2

125.4

Equities


15.5

0.6

(0.7)

(0.1)

1.2

16.6

Fixed income


22.0

1.2

(0.8)

0.4

0.3

22.7

Multi-asset6


38.6

4.3

(1.6)

2.7

2.6

43.9

Real estate


7.4

0.2

(0.1)

0.1

0.2

7.7

MyFolio


5.9

0.6

(0.2)

0.4

0.3

6.6

Other7


13.6

0.5

(0.3)

0.2

(0.7)

13.1

Ignis8


14.5

0.5

(0.5)

-

0.3

14.8

By asset class

117.5

7.9

(4.2)

3.7

4.2

125.4

Wholesale9

35.5

4.5

(1.9)

2.6

1.1

39.2

Institutional

61.4

2.7

(1.6)

1.1

2.5

65.0

Wealth

6.1

0.2

(0.2)

-

0.3

6.4

Ignis

14.5

0.5

(0.5)

-

0.3

14.8

By channel

117.5

7.9

(4.2)

3.7

4.2

125.4


Standard Life Group

84.6

0.9

(1.4)

(0.5)

4.2

88.3


Phoenix Group

43.8

-

(1.3)

(1.3)

2.2

44.7


Strategic partner life business AUM

128.4

0.9

(2.7)

(1.8)

6.4

133.0


AUM - continuing operations

245.9

8.8

(6.9)

1.9

10.6

258.4


For further information please contact:

Institutional Equity Investors

Retail Equity Investors

Jakub Rosochowski*

0131 245 8028 / 07515 298 608

Capita Asset Services*

0845 113 0045

Neil Longair*

0131 245 6466 / 07711 357 595

 

 

Chris Stewart*

0131 245 2176 / 07525 149 377

 

 

Media


Debt Investors

 

Steve Hartley*

0131 245 1365 / 07702 934 651

Stephen Percival*

Nicki Lundy*

0131 245 2737 / 07515 298 302

Nick Mardon*

0131 245 6371

Tulchan Communications

020 7353 4200

 

 

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

Newswires and online publications

A conference call for newswires and online publications will take place on Wednesday 29 April at 07:30 (UK time). Participants should dial +44 (0)20 3059 8125 and quote Standard Life Q1 AUA and flows update. A replay facility will be available for seven days. To access the replay please dial +44 (0)121 260 4861 and use pass code 0594829#.

Investors and Analysts

A conference call for analysts and investors will take place on Wednesday 29 April at 09:00 (UK time). Participants should dial +44 (0)20 3059 8125 and quote Standard Life Q1 AUA and flows update. A replay facility will be available for seven days. To access the replay please dial +44 (0)121 260 4861. The pass code is 0595163#.

There will also be a live audiocast at the same time with the facility to ask questions.

Notes to Editors

1   Continuing operations excludes the Canadian business assets sold on 30 January 2015 (£32.8bn).

2   Excluding strategic partner life business.

3   Excluding strategic partner life business and Ignis.

4   In the 3 months to 31 March 2015, UK corporate assets have been renamed as workplace.

5   Certain products are included in both Group AUA and Standard Life Investments third party AUM. Therefore, at a Group level an elimination adjustment is required to remove any duplication, in addition to other necessary consolidation adjustments. Comprises £16.7bn (FY 2014: £15.2bn) related to fee business eliminations and £0.4bn (FY 2014: £0.4bn) related to other eliminations.

6   Comprises suite of global absolute return strategies and balanced funds.

7   Comprises cash, private equity and Wealth. Net inflows from India cash funds £0.2bn (Q1 2014: net outflow £0.1bn).

8   Net inflows from Ignis liquidity funds £0.3bn (Q1 2014: £nil).

9   India cash funds were reclassified as Wholesale in the year to 31 December 2014.

 



 

Supplementary information

Group assets under administration net flows - 15 months ended 31 March 2015


Fee (F)

Spread/risk (S/R)

3 months to
31 Mar 2015

3 months to
31 Dec 2014

3 months to
 30 Sep 2014

3 months to

30 Jun 2014

3 months to

31 Mar 2014


Other (O)

£bn

£bn

£bn

£bn

£bn

Total fee


3.0

(3.1)

0.2

2.3

2.3

Total spread/risk


(0.2)

(0.3)

(0.2)

(0.2)

(0.2)

Total other


0.1

0.1

-

-

0.1

Total net flows


2.9

(3.3)

-

2.1

2.2

By business:







Standard Life Investments







Third party (excl. strategic partner life business)


3.7

(2.9)

0.6

2.1

1.9

Third party strategic partner life business


(1.3)

(0.9)

(0.7)

Standard Life Investments total third party

F

2.4

(3.8)

(0.1)

2.1

1.9

UK







UK retail new fee business


0.9

0.8

0.6

0.7

0.8

UK retail old fee business


(0.5)

(0.5)

(0.6)

(0.5)

(0.6)

Workplace4


0.6

0.6

0.7

0.4

0.5

UK retail and workplace4 fee

F

1.0

0.9

0.7

0.6

0.7

Conventional with profits

F

(0.2)

(0.3)

(0.2)

(0.3)

(0.2)

Annuities

S/R

(0.2)

(0.3)

(0.2)

(0.2)

(0.2)

Assets not backing products

O

-

-

-

-

-

UK total


0.6

0.3

0.3

0.1

0.3

Europe







Fee

F

0.3

0.3

0.2

0.3

0.3

Spread/risk

S/R

-

-

-

-

-

Europe total


0.3

0.3

0.2

0.3

0.3

UK and Europe total


0.9

0.6

0.5

0.4

0.6

Asia and Emerging Markets







Wholly owned

F

-

-

0.1

-

-

Joint ventures

O

0.1

0.1

-

-

0.1

Asia and Emerging total


0.1

0.1

0.1

-

0.1

Other corporate assets

O

-

-

-

-

-

Consolidation and eliminations5

F/O

(0.5)

(0.2)

(0.5)

(0.4)

(0.4)

Group net flows - continuing operations


2.9

(3.3)

-

2.1

2.2

Standard Life Investments assets under management net flows - 15 months ended 31 March 2015



3 months to
31 Mar 2015

3 months to
31 Dec 2014

3 months to
 30 Sep 2014

3 months to

30 Jun 2014

3 months to

31 Mar 2014



£bn

£bn

£bn

£bn

£bn

Third party net flows (excl. Strategic partner life business)

UK

1.0

0.4

(0.3)

1.4

0.4

Europe

1.2

0.5

0.2

0.1

0.5

North America

0.8

0.3

0.1

0.4

0.7

Asia Pacific

0.2

0.1

0.2

-

0.1

India

0.5

0.3

0.2

0.2

0.2

Ignis

-

(4.5)

0.2

-

-

By geography of client

3.7

(2.9)

0.6

2.1

1.9

Equities

(0.1)

(1.0)

(0.5)

-

0.2

Fixed income

0.4

-

(0.9)

(0.1)

-

Multi-asset6

2.7

1.4

1.0

1.4

1.3

Real estate

0.1

0.3

0.2

0.2

-

MyFolio

0.4

0.5

0.3

0.4

0.4

Other7

0.2

0.4

0.3

0.2

-

Ignis8

-

(4.5)

0.2

-

-

By asset class

3.7

(2.9)

0.6

2.1

1.9

Wholesale9

2.6

1.5

1.2

1.1

1.4

Institutional

1.1

0.1

(0.8)

0.9

0.6

Wealth

-

-

-

0.1

(0.1)

Ignis

-

(4.5)

0.2

-

-

By channel

3.7

(2.9)

0.6

2.1

1.9


Standard Life Group

(0.5)

(0.5)

(0.8)

(0.7)

(0.4)


Phoenix Group

(1.3)

(0.9)

(0.7)

-

-


Strategic partner life business net flows

(1.8)

(1.4)

(1.5)

(0.7)

(0.4)


Asset management net flows - continuing operations

1.9

(4.3)

(0.9)

1.4

1.5

 

Group assets under administration - three months ended 31 March 2014


Fee (F)

Spread/risk (S/R)

 Other (O)

Opening AUA at

1 Jan 2014

Gross

flows

Redemptions

Net

flows

Market

and other

movements

Closing

AUA at

31 Mar 2014


£bn

£bn

£bn

£bn

£bn

£bn

Total fee


190.7

6.8

(4.5)

2.3

0.9

193.9

Total spread/risk


15.1

0.1

(0.3)

(0.2)

0.3

15.2

Total other


8.9

0.1

-

0.1

-

9.0

Total AUA


214.7

7.0

(4.8)

2.2

1.2

218.1

By business:








Standard Life Investments








Third party (excl. strategic partner life business)

89.8

5.3

(3.4)

1.9

0.8

92.5

Third party strategic partner life business


-

-

-

-

-

-

Standard Life Investments total third party

F

89.8

5.3

(3.4)

1.9

0.8

92.5

UK








UK retail new fee business


33.8

1.6

(0.8)

0.8

0.3

34.9

UK retail old fee business


33.5

0.2

(0.8)

(0.6)

0.2

33.1

Workplace4


29.2

0.9

(0.4)

0.5

(0.2)

29.5

UK retail and workplace4 fee

F

96.5

2.7

(2.0)

0.7

0.3

97.5

Conventional with profits

F

2.9

-

(0.2)

(0.2)

-

2.7

Annuities

S/R

14.6

0.1

(0.3)

(0.2)

0.2

14.6

Assets not backing products

O

5.7

-

-

-

-

5.7

UK total


119.7

2.8

(2.5)

0.3

0.5

120.5

Europe








Fee

F

14.9

0.6

(0.3)

0.3

0.4

15.6

Spread/risk

S/R

0.5

-

-

-

0.1

0.6

Europe total


15.4

0.6

(0.3)

0.3

0.5

16.2

UK and Europe total


135.1

3.4

(2.8)

0.6

1.0

136.7

Asia and Emerging Markets








Wholly owned

F

0.3

-

-

-

-

0.3

Joint ventures

O

1.6

0.1

-

0.1

-

1.7

Asia and Emerging total


1.9

0.1

-

0.1

-

2.0

Other corporate assets

O

2.0

-

-

-

-

2.0

Consolidation and eliminations5

F/O

(14.1)

(1.8)

1.4

(0.4)

(0.6)

(15.1)

Group AUA - continuing operations


214.7

7.0

(4.8)

2.2

1.2

218.1

Standard Life Investments assets under management - three months ended 31 March 2014




Opening AUM at

1 Jan 2014

Gross

flows

Redemptions

Net

flows

Market

and other

movements

Closing

AUM at

31 Mar 2014



£bn

£bn

£bn

£bn

£bn

£bn

Third party AUM (excl. Strategic partner life business)

UK


68.3

3.2

(2.8)

0.4

0.5

69.2

Europe

10.4

0.8

(0.3)

0.5

(0.2)

10.7

North America


5.2

0.9

(0.2)

0.7

0.5

6.4

Asia Pacific


1.8

0.2

(0.1)

0.1

(0.1)

1.8

India


4.1

0.2

-

0.2

0.1

4.4

Ignis


-

-

-

-

-

-

By geography of client

89.8

5.3

(3.4)

1.9

0.8

92.5

Equities


15.1

0.8

(0.6)

0.2

0.1

15.4

Fixed income


20.2

0.7

(0.7)

-

0.2

20.4

Multi-asset6


31.4

2.9

(1.6)

1.3

0.1

32.8

Real estate


6.1

0.2

(0.2)

-

0.2

6.3

MyFolio


4.0

0.5

(0.1)

0.4

-

4.4

Other7


13.0

0.2

(0.2)

-

0.2

13.2

Ignis8


-

-

-

-

-

-

By asset class

89.8

5.3

(3.4)

1.9

0.8

92.5

Wholesale9

28.9

3.2

(1.8)

1.4

(0.1)

30.2

Institutional

55.1

2.0

(1.4)

0.6

0.8

56.5

Wealth

5.8

0.1

(0.2)

(0.1)

0.1

5.8

Ignis

-

-

-

-

-

-

By channel

89.8

5.3

(3.4)

1.9

0.8

92.5


Standard Life Group

80.3

1.3

(1.7)

(0.4)

0.8

80.7


Phoenix Group

-

-

-

-

-

-


Strategic partner life business AUM

80.3

1.3

(1.7)

(0.4)

0.8

80.7


AUM - continuing operations

170.1

6.6

(5.1)

1.5

1.6

173.2

 


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