In its first quarter statement the asset manager said: “While it will be some time before long-term trends become clear, the negative profit impact of the changes will reflect the relatively small size of our annuity business.”
However, results were improved by Stand Life Investments £2bn net third party assets under management as investors continued to favour its Global Absolute Return Strategies Fund. This is down year on year from £3.2bn net third party AUM in the same quarter 2013.
Assets under administration increased by 1.5% to £247.8bn driven by net inflows of £2.4bn. This is up from £233.1bn AUA in the same quarter last year.
“Although investment markets and exchange rates may affect the pace of growth, and there will be some negative impact from changes to annuity regulations in the UK, we remain very well positioned for the future and look forward with confidence to delivering growing returns for our shareholders,” chief executive David Nish said.
Last month, SLI announced that it had agreed terms with Phoenix Group to purchase the entire share capital of Ignis Asset Management for £390m in cash. Subject to regulatory approval, the deal is expected to complete by the end of the second quarter.
