Net outflows slowed from £37bn the year before, yet SLA showed signs of further suffering as it revealed outflows of £10.7bn from its flagship GARS fund, up from £4.3bn in 2016.
However, despite this, SLA shares were up approximately 4% on Friday morning.
The firm reported adjusted pre-tax profit of £854m, an increase from £718m in 2016. Additionally, assets under management and administration (AUMA) grew 1% to £654.9bn.
The full year results were reported alongside its announcement of the sale of its insurance arm to Phoenix Group in a £3bn cash and shares deal.
Martin Gilbert (pictured) and Keith Skeoch, co-chief executives, said this decision represents a “logical step” in the firm’s journey and completes its “transformation to a fee-based capital-light investment company”.
The firm stated it is targeting “at least £250m of annualised cost synergies”.
The CEOs said: “While market conditions remain tough, particularly within the institutional channel, the momentum in our business is good demonstrated by the £80bn of gross inflows attracted during the year.
“Although we have seen net outflows, these have reduced year-on-year and continue to improve as our investment and distribution teams begin to leverage the full breadth of our capabilities, global reach and scale.”
Commenting on the firm’s recent loss of its biggest client, Lloyds Banking Group, Gilbert and Skeoch said while it was disappointing, the firm are “winning new mandates across a wide range of investment strategies” and are looking to launch 22 news funds during the year.
“Meanwhile, our adviser platforms, which are not subject to the proposed sale, have attracted record flows demonstrating the diversity of our business and our leading position in a fast-growing market,” they added.
“Strong foundations are now in place as we continue to build a world-class investment company to deliver long-term value for our clients, our people and our shareholders.”
More changes
While reporting its first annual results since the merger and the sale of its insurance arm, SLA announced further changes.
The report revealed that chairman Gerry Grimstone, would be stepping down from his position by the end of 2019, after serving for 11 years.
Grimstone said: “It has been my privilege to serve as chairman for 11 years and I will continue to do so until my successor is in place. The announcement that we have made today, if approved by shareholders, marks the completion of the transformation of the company from Europe’s largest mutual life assurance company, to a global investment powerhouse.
“This has been a period of enormous change for the company and serving the board through this has been both challenging and rewarding. It has been extremely satisfying to have played my part in all that we have achieved.”
Likewise, directors Julie Chakraverty, Lynne Peacock and Akira Suzuki will also retire from the board at the conclusion of its next AGM, the exact date is still to be determined.
Simon Troughton, deputy chairman, speaking on behalf of the board said: “Sir Gerry’s contribution to the success of Standard Life Aberdeen over the last decade has been immeasurable. He has led the company through its transformation from a newly listed life assurance company to being the UK’s largest active investment management company with an increasingly global reach. He will be a hard act to follow.
“We have a strong governance framework in place and following today’s announcement, the Appointments Committee led by Melanie Gee and myself, will now commence the search for a suitable successor.”
