28th Oct 2015 07:00
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) | OpeningAUA 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 +44 (0)20 3059 8125 and quote Standard Life Q3 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 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 +44 (0)20 3059 8125 and quote Standard Life Q3 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 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 to30 Sep 2015 | 3 months to30 Jun 2015 | 3 months to31 Mar 2015 | 3 months to31 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 to30 Sep 2015 | 3 months to30 Jun 2015 | 3 months to31 Mar 2015 | 3 months to31 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 | ||
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