According to Standard Life group’s full year results for 2014, total asset flows declined from £8.8bn to just £1bn over the year although SLI wholesale business saw net flows of £5.2bn.
The purchase of Ignis brought £60.5bn of assets to the group, while third party AUM excluding strategic partner life business was up from £89.8bn to £117.5bn, representing 48% of total AUM.
As well as £2.3bn “previously announced low revenue margin” outflows, SLI’s third party net inflows of £1.7bn were countered by £2.6bn outflows from the Ignis Absolute Return Government Bond Fund following the departure of Russ Oxley and his team, who left the group in October to join Old Mutual Global Investors.
There was also an expected hit of £1.6bn net outflows in assets managed for Phoenix Group, described as in “natural run-off”.
SLI’s operating profit was up 30% to £257m while fee-based revenue rose 34% from £514m to £686m.
The results showed a 43% hike in third-party revenues with EBITDA of 39%, unchanged from 2013. Adding it was “on track” to reach its 2017 EBITDA target of 45%, SLI said earnings raised through the acquisition of Ignis were offset by the purchase of Newton Management private client division and the negative impact of foreign exchange as sterling strengthened against other currencies, including the rupee.
The group said in addition to the conversion of its Select Income Fund to the Short Duration Credit Fund, offering investors a shield against rising interest rates, it had a “strong pipeline of new investment initiatives”.
At group level, operating profit before tax was 19% higher, to £604m while full dividend per share increased from 15.80p to 17.03p, which, if approved, will be paid out on 19 May 2015.
Assets under administration on Standard Life Wrap rose 26% to almost £21bn, a quarter of which were run by SLI.
