12th May 2020 09:51
(Alliance News) - Standard Life Aberdeen PLC on Tuesday reported a 10% decline in assets under management and administration, as it recorded GBP24 billion in net outflows during the first four months of 2020.
Shares in the FTSE 100 wealth manager were up 3.3% at 221.80 pence each in London.
The company's estimated AUMA at April 30 was GBP490 billion, down 10% from GBP544.6 billion at the end of 2019, with estimated net outflows of GBP24 billion. The remaining GBP30.6 billion of the decline would have been from market movements, though Standard Life Aberdeen didn't specify this in its statement Tuesday.
However, the company noted that excluding around GBP25 billion withdrawals related to a Lloyds Banking Group PLC mandate, it saw net inflows of GBP1 billion.
In a video statement to Standard Life Aberdeen's annual general meeting, Chief Executive Keith Skeoch reiterated the company's commitment to pay the 14.3p final dividend in respect of 2019, saying this was supported by its capital strength and GBP237 million proceeds from the sale of shares in its Indian joint venture HDFC Life.
"During these turbulent times, we continue to focus on what we can control and are continuing the process of reshaping our cost base to ensure that it is future fit. We are making progress towards our synergy targets, but the external environment may impact the phasing of some of our activities over this year," Skeoch said.
"We also know that the market turmoil has had a negative impact on the value of many businesses and is constraining their ability to operate normally. As an active and long-term investor we are fully committed to providing support, where appropriate, to the companies we invest in. This tough and uncertain environment is likely to last for a while and it's a time when we need to reinforce our purpose - Together, we invest for a better future."
By Tapan Panchal; [email protected]
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