Inflows fall 38% at Standard Life Investments

Inflows at Standard Life Investments fell 38%, from £4.7bn to £2.9bn.


Standard Life Investments blamed tough market conditions where debt woes and sluggish markets continued to dampen investor confidence.

The fall comes even though MyFolio funds grew to £0.6 billion since launching late last year, run by former Gartmore head of fund of funds, Bambos Hambi.

The MyFolio range has become the company’s default option for online execution-only pensions, mutual funds and ISAs, available through a number of platforms.

“We are also working with intermediaries to help promote MyFolio,” the company said. “MyFolio funds are an example of how we can capture greater margins through our combination of businesses.”

Since launch, over 60% of MyFolio funds have flowed into Standard Life Investments managed funds, resulting in additional revenue for the group.

The company also maintained it was continuing to deliver “robust long-term investment performance”, citing 91% of funds over one year, and 78% of funds over three years, outperformed their benchmark indices.

The company defended the fall in inflows, saying it was increasing profits while investing for transformation and growth.

“We have previously said that we were targeting £100m of annual margin improvement by 2012 to be achieved through greater efficiency, as well as improved asset mix and increasing flows to Standard Life Investments,” it said in a statement.

“To date, we have achieved efficiency savings of £64m and increased revenues from our fee based products resulting from strong flows into higher margin propositions and Standard Life Investments.”

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