Q3 AUA and flows update

RNS Number : 6361D

Standard Life plc

28 October 2015

 

Standard Life plc   

2015 Q3 AUA and flows update

28 October 2015

Strong demand in volatile investment markets

Assets under administration¹ up 2% to £301.9bn (FY 2014: £296.6bn; Q3 2014: £290.0bn) in volatile markets, driven by strong net inflows of £5.8bn, including net inflows of £2.4bn in Q3 2015

·   Standard Life Investments meeting the investment needs of clients across the globe with 3rd party net inflows of £5.3bn (2014: £3.9bn):

o Wholesale and institutional net inflows more than doubled to £10.0bn (2014: £4.4bn) representing annualised 14% of opening AUM, including £2.9bn in Q3 2015 (Q3 2014: £0.4bn)

o 64% of net inflows² year to date from outside the UK as we continue to expand our global reach

o Third party AUM³ ahead of benchmark over 1 year: 85%; 3 years: 94%; and 5 years: 95%

·   UK and Europe business continuing to build momentum with net inflows of £1.9bn (2014: £1.5bn):

o Workplace and retail new fee business net inflows up 20% to £4.4bn (annualised 8.5% of opening AUA) including £1.5bn in Q3 2015 (Q3 2014: £1.3bn)

o Added 190,000 new customers year to date and 70,000 in the quarter through auto enrolment, contributing to 12% increase in regular contributions into workplace pensions

o Increased Wrap⁴ assets to £23.6bn (up 20% year-on-year) with Wrap net inflows up 25% to £3.3bn including a record £1.2bn in Q3 2015

·   Agreed terms to increase stake in HDFC Life from 26% to 35% for c£170m subject to regulatory approval

Keith Skeoch, Chief Executive, commented:

"Standard Life has performed well against a backdrop of volatile investment markets. We have delivered consistently strong investment performance and record third party net inflows of £10bn across our institutional and wholesale channels. The strength of our propositions has helped our Wrap platform to achieve its highest ever quarterly net inflows and regular contributions into our workplace pensions are growing strongly. We remain well positioned with clients and customers to deliver growth as we continue to innovate and increase collaboration across our businesses."

Unless otherwise stated, all figures are reported

on a continuing basis¹ for the nine months ended 30 September 2015

Assets and flows

Group assets under administration - nine months ended 30 September 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 30 Sep 2015
			£bn	£bn	£bn	£bn	£bn	£bn
Total fee			268.6	31.1	(24.8)	6.3	(0.6)	274.3
Total spread/risk			16.1	0.2	(0.9)	(0.7)	(0.2)	15.2
Total other			11.9	0.4	(0.2)	0.2	0.3	12.4
Total AUA			296.6	31.7	(25.9)	5.8	(0.5)	301.9
By business:
Standard Life Investments
Third party3			117.5	22.9	(15.1)	7.8	0.8	126.1
Third party strategic partner life business			43.8	0.2	(2.7)	(2.5)	1.2	42.5
Standard Life Investments total third party		F	161.3	23.1	(17.8)	5.3	2.0	168.6
UK
UK retail new fee business			37.3	5.6	(2.7)	2.9	-	40.2
UK retail old fee business			33.5	0.5	(2.4)	(1.9)	0.3	31.9
Workplace			32.0	3.1	(1.6)	1.5	(1.9)	31.6
UK retail and workplace fee		F	102.8	9.2	(6.7)	2.5	(1.6)	103.7
Conventional with profits		F	2.1	-                 -	(0.7)	(0.7)	0.1	1.5
Annuities		S/R	15.5	0.2	(0.9)	(0.7)	(0.1)	14.7
Assets not backing products		O	7.7	-	-	-	0.1	7.8
UK total			128.1	9.4	(8.3)	1.1	(1.5)	127.7
Europe
Fee		F	17.2	1.6	(0.8)	0.8	(0.6)	17.4
Spread/risk		S/R	0.6	-	-	-	(0.1)	0.5
Europe total			17.8	1.6	(0.8)	0.8	(0.7)	17.9
UK and Europe total			145.9	11.0	(9.1)	1.9	(2.2)	145.6
India and China
Hong Kong		F	0.4	0.1	(0.1)	-	-	0.4
Joint ventures		O	2.1	0.4	(0.2)	0.2	-	2.3
India and China total			2.5	0.5	(0.3)	0.2	-	2.7
Other corporate assets		O	2.5	-	-	-	0.2	2.7
Consolidation and eliminations5		F/O	(15.6)	(2.9)	1.3	(1.6)	(0.5)	(17.7)
Group AUA - continuing operations1			296.6	31.7	(25.9)	5.8	(0.5)	301.9

Standard Life Investments assets under management - nine months ended 30 September 2015

							Opening AUM at 1 Jan 2015				Gross flows	Redemptions	Net flows	Market and other movements	Closing AUM at 30 Sep 2015
							£bn				£bn	£bn	£bn	£bn	£bn
Third party AUM3	UK						75.5				11.4	(7.8)	3.6	1.3	80.4
	Europe						11.3				4.1	(1.4)	2.7	(0.9)	13.1
	North America						8.1				3.6	(1.2)	2.4	0.2	10.7
	Asia Pacific						2.0				1.4	(0.7)	0.7	0.2	2.9
	India						6.1				0.7	-	0.7	(0.3)	6.5
	Ignis						14.5				1.7	(4.0)	(2.3)	0.3	12.5
	By geography of client							117.5			22.9	(15.1)	7.8	0.8	126.1
	Equities				15.5						2.0	(2.0)	-	0.2	15.7
	Fixed income				22.0						2.5	(1.9)	0.6	(0.8)	21.8
	Multi-asset6				38.6						12.6	(5.2)	7.4	1.5	47.5
	Real estate				7.4						0.8	(0.5)	0.3	0.5	8.2
	MyFolio				5.9						1.9	(0.5)	1.4	(0.1)	7.2
	Other7				13.6						1.4	(1.0)	0.4	(0.8)	13.2
	Ignis8				14.5						1.7	(4.0)	(2.3)	0.3	12.5
	By asset class							117.5			22.9	(15.1)	7.8	0.8	126.1
	Wholesale					35.5					12.6	(5.5)	7.1	(0.7)	41.9
	Institutional					61.4					8.0	(5.1)	2.9	1.2	65.5
	Wealth					6.1					0.6	(0.5)	0.1	-	6.2
	Ignis					14.5					1.7	(4.0)	(2.3)	0.3	12.5
	By channel								117.5		22.9	(15.1)	7.8	0.8	126.1
	Standard Life Group					84.6					3.2	(4.8)	(1.6)	(1.0)	82.0
	Phoenix Group					43.8					0.2	(2.7)	(2.5)	1.2	42.5
	Strategic partner life business AUM					128.4					3.4	(7.5)	(4.1)	0.2	124.5
	Standard Life Investments AUM - continuing operations1									245.9	26.3	(22.6)	3.7	1.0	250.6

For further information please contact:

Institutional Equity Investors		Retail Equity Investors
Jakub Rosochowski*	0131 245 8028 / 07515 298 608	Capita Asset Services*	0345 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*	0131 245 1571
Barry Cameron*	0131 245 6165 / 07712 486 463	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 28 October at 07:30 (UK time). Participants should dial [phone] and quote Standard Life Q3 AUA and flows update. A replay facility will be available for seven days. To access the replay please dial [phone]. The pass code is 1655869#.

Investors and Analysts

A conference call for analysts and investors will take place on Wednesday 28 October at 09:00 (UK time). Participants should dial [phone] and quote Standard Life Q3 AUA and flows update. A replay facility will be available for seven days. To access the replay please dial [phone]. The pass code is 1595850#.

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

Notes to Editors

1   Continuing operations excludes Canada and our Dubai and Singapore insurance businesses.

2   Excluding strategic partner life business and Ignis.

3   Excluding strategic partner life business.

4   Wrap AUA and flows are reported predominantly within UK retail new fee business (offshore bond reported within Europe fee).

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 £17.3bn (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. Year to date net inflows from India cash funds £0.3bn (2014: £0.3bn).

8   Year to date net inflows from Ignis liquidity funds £0.6bn (2014: £0.1bn).

Supplementary information

Group assets under management net flows - 15 months ended 30 September 2015

	Fee (F) Spread/risk (S/R)	3 months to 30 Sep 2015	3 months to 30 Jun 2015	3 months to 31 Mar 2015	3 months to 31 Dec 2014	3 months to  30 Sep 2014
	Other (O)	£bn	£bn	£bn	£bn	£bn
Total fee		2.5	0.8	3.0	(3.1)	0.2
Total spread/risk		(0.2)	(0.3)	(0.2)	(0.3)	(0.2)
Total other		0.1	-	0.1	0.1	-
Total net flows		2.4	0.5	2.9	(3.3)	-
By business:
Standard Life Investments
Third party3		2.6	1.5	3.7	(2.9)	0.6
Third party strategic partner life business		(0.3)	(0.9)	(1.3)	(0.9)	(0.7)
Standard Life Investments total third party	F	2.3	0.6	2.4	(3.8)	(0.1)
UK
UK retail new fee business		1.1	0.9	0.9	0.8	0.6
UK retail old fee business		(0.7)	(0.7)	(0.5)	(0.5)	(0.6)
Workplace		0.4	0.5	0.6	0.6	0.7
UK retail and workplace fee	F	0.8	0.7	1.0	0.9	0.7
Conventional with profits	F	(0.3)	(0.2)	(0.2)	(0.3)	(0.2)
Annuities	S/R	(0.2)	(0.3)	(0.2)	(0.3)	(0.2)
Assets not backing products	O	-	-	-	-	-
UK total		0.3	0.2	0.6	0.3	0.3
Europe
Fee	F	0.3	0.2	0.3	0.3	0.2
Spread/risk	S/R	-	-	-	-	-
Europe total		0.3	0.2	0.3	0.3	0.2
UK and Europe total		0.6	0.4	0.9	0.6	0.5
India and China
Hong Kong	F	-	-	-	-	0.1
Joint ventures	O	0.1	-	0.1	0.1	-
India and China total		0.1	-	0.1	0.1	0.1
Consolidation and eliminations5	F	(0.6)	(0.5)	(0.5)	(0.2)	(0.5)
Group net flows - continuing operations1		2.4	0.5	2.9	(3.3)	-

Standard Life Investments assets under management net flows - 15 months ended 30 September 2015

		3 months to 30 Sep 2015		3 months to 30 Jun 2015	3 months to 31 Mar 2015	3 months to 31 Dec 2014	3 months to  30 Sep 2014
		£bn		£bn	£bn	£bn	£bn
Third party net flows3	UK	1.5		1.1	1.0	0.4	(0.3)
	Europe	0.5		1.0	1.2	0.5	0.2
	North America	0.9		0.7	0.8	0.3	0.1
	Asia Pacific	(0.1)		0.6	0.2	0.1	0.2
	India	0.2		-	0.5	0.3	0.2
	Ignis	(0.4)		(1.9)	-	(4.5)	0.2
	By geography of client	2.6		1.5	3.7	(2.9)	0.6
	Equities	0.1		-	(0.1)	(1.0)	(0.5)
	Fixed income	0.2		-	0.4	-	(0.9)
	Multi-asset6	1.8		2.9	2.7	1.4	1.0
	Real estate	0.1		0.1	0.1	0.3	0.2
	MyFolio	0.5		0.5	0.4	0.5	0.3
	Other7	0.3		(0.1)	0.2	0.4	0.3
	Ignis	(0.4)		(1.9)	-	(4.5)	0.2
	By asset class	2.6		1.5	3.7	(2.9)	0.6
	Wholesale	1.8		2.7	2.6	1.5	1.2
	Institutional	1.1		0.7	1.1	0.1	(0.8)
	Wealth	0.1		-	-	-	-
	Ignis	(0.4)		(1.9)	-	(4.5)	0.2
	By channel	2.6		1.5	3.7	(2.9)	0.6
Standard Life Group		(0.4)		(0.7)	(0.5)	(0.5)	(0.8)
Phoenix Group		(0.3)		(0.9)	(1.3)	(0.9)	(0.7)
Strategic partner life business net flows		(0.7)		(1.6)	(1.8)	(1.4)	(1.5)
Standard Life Investments net flows - continuing operations1			1.9	(0.1)	1.9	(4.3)	(0.9)

Group assets under administration - nine months ended 30 September 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 30 Sep 2014
				£bn	£bn	£bn	£bn	£bn	£bn
Total fee				190.7	24.5	(19.7)	4.8	68.2	263.7
Total spread/risk				15.1	0.3	(0.9)	(0.6)	1.1	15.6
Total other				8.9	0.3	(0.2)	0.1	1.7	10.7
Total AUA				214.7	25.1	(20.8)	4.3	71.0	290.0
By business:
Standard Life Investments
Third party3				89.8	17.2	(12.6)	4.6	22.4	116.8
Third party strategic partner life business				-	-	(0.7)	(0.7)	42.8	42.1
Standard Life Investments total third party			F	89.8	17.2	(13.3)	3.9	65.2	158.9
UK
UK retail new fee business				33.8	4.5	(2.4)	2.1	1.5	37.4
UK retail old fee business				33.5	0.5	(2.2)	(1.7)	1.2	33.0
Workplace				29.2	3.0	(1.4)	1.6	-	30.8
UK retail and workplace fee			F	96.5	8.0	(6.0)	2.0	2.7	101.2
Conventional with profits			F	2.9	0.1	(0.8)	(0.7)	0.1	2.3
Annuities			S/R	14.6	0.3	(0.9)	(0.6)	1.0	15.0
Assets not backing products			O	5.7	-	-	-	0.9	6.6
UK total				119.7	8.4	(7.7)	0.7	4.7	125.1
Europe
Fee			F	14.9	1.6	(0.8)	0.8	0.5	16.2
Spread/risk			S/R	0.5	-	-	-	0.1	0.6
Europe total				15.4	1.6	(0.8)	0.8	0.6	16.8
UK and Europe total				135.1	10.0	(8.5)	1.5	5.3	141.9
India and China
Hong Kong			F	0.3	0.1	-	0.1	-	0.4
Joint ventures			O	1.6	0.3	(0.2)	0.1	0.2	1.9
India and China total				1.9	0.4	(0.2)	0.2	0.2	2.3
Other corporate assets			O	2.0	-	-	-	0.6	2.6
Consolidation and eliminations5			F/O	(14.1)	(2.5)	1.2	(1.3)	(0.3)	(15.7)
Group AUA - continuing operations1				214.7	25.1	(20.8)	4.3	71.0	290.0

Standard Life Investments assets under management - nine months ended 30 September 2014

		Opening AUM at 1 Jan 2014		Gross flows	Redemptions	Net flows	Market and other movements	Closing AUM at 30 Sep 2014
		£bn		£bn	£bn	£bn	£bn	£bn
Third party AUM3	UK	68.3		10.4	(8.9)	1.5	2.8	72.6
	Europe	10.4		2.0	(1.2)	0.8	(0.6)	10.6
	North America	5.2		2.3	(1.1)	1.2	1.0	7.4
	Asia Pacific	1.8		0.7	(0.4)	0.3	(0.2)	1.9
	India	4.1		0.6	-	0.6	0.8	5.5
	Ignis	-		1.2	(1.0)	0.2	18.6	18.8
	By geography of client	89.8		17.2	(12.6)	4.6	22.4	116.8
	Equities	15.1		2.1	(2.4)	(0.3)	0.3	15.1
	Fixed income	20.2		1.7	(2.7)	(1.0)	1.8	21.0
	Multi-asset6	31.4		8.5	(4.8)	3.7	1.3	36.4
	Real estate	6.1		0.7	(0.3)	0.4	0.4	6.9
	MyFolio	4.0		1.6	(0.5)	1.1	0.2	5.3
	Other7	13.0		1.4	(0.9)	0.5	(0.2)	13.3
	Ignis8	-		1.2	(1.0)	0.2	18.6	18.8
	By asset class	89.8		17.2	(12.6)	4.6	22.4	116.8
	Wholesale	28.9		8.5	(4.8)	3.7	0.6	33.2
	Institutional	55.1		7.0	(6.3)	0.7	3.0	58.8
	Wealth	5.8		0.5	(0.5)	-	0.2	6.0
	Ignis	-		1.2	(1.0)	0.2	18.6	18.8
	By channel	89.8		17.2	(12.6)	4.6	22.4	116.8
Standard Life Group		80.3		2.9	(4.8)	(1.9)	3.4	81.8
Phoenix Group		-		-	(0.7)	(0.7)	42.8	42.1
Strategic partner life business AUM		80.3		2.9	(5.5)	(2.6)	46.2	123.9
Standard Life Investments AUM - continuing operations1			170.1	20.1	(18.1)	2.0	68.6	240.7

 

END

 

 

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