Standard life investments 3rd party AUM break through 50% milestone

14 March 2013

Standard Life Investments, the global fund manager, today announced that its third party assets under management (AUM) now account for over 50% of its total assets under management. Standard Life Investments was launched in November 1998 with total AUM of £62.7bn of which £5.9bn, 9.4%, was third party money.

Keith Skeoch, CEO, Standard Life Investments said:

"To have achieved this milestone in such a relatively short length of time shows the ongoing trust that clients have placed in Standard Life Investments’ ability to provide investment solutions, strong performance, and high levels of client service.

"This milestone reflects the sustainable global growth of Standard Life Investments’ investment proposition. It comes on the back of a very strong set of results in 2012 which showed that 62% of net flows came from outside the UK, including £1.8bn ($2.8bn) from the US.

"Clients are increasingly recognising the benefits of managers who take a long term approach to investing and provide investment solutions designed to meet their requirements. I am confident that Standard Life Investments will continue its global growth and am committed to providing clients with a range of innovative investment solutions designed to meet their investment goals."

Highlights of Standard Life Investments’ performance in 2012 include:

  • Earnings before interest and tax (EBIT) up 15% to a record £145m (2011: £126m)
  • Worldwide third party sales up 42% to £6.1bn (2011: £4.3bn)
  • Retention rates were some of the highest in the industry at just 14%* of opening AUM
  • 44% of third party sales generated from strategic partners like: John Hancock (US), HDFC Asset Management (India), Sumitomo Mitsui Trust Bank (Japan) and Standard Life
  • Third party AUM up 16% to a record £83.0bn (2011: £71.8bn)
  • Total AUM up 8% to a record £167.7bn (2011: £154.9bn)
  • Strong investment performance with 91% of funds over one year and 81% over three year time periods outperforming their benchmark
  • Strong product development pipeline

* excluding the outflow of £1.8bn relating to the loss of a single low yield mandate following a client’s change of pension scheme strategy

Commenting on Standard Life Investments’ 2012 results Keith Skeoch said:

"Standard Life Investments produced very strong results in 2012, delivering record EBIT, record profit, record year end third party aum and record total aum. This achievement demonstrates client confidence in our focus on change philosophy, that drives our investment process, and the team based approach adopted by Standard Life Investments.

"While 2013 will continue to be challenging with global economies facing many uncertainties, I firmly believe that Standard Life Investments has the performance, products and people to enable our clients to prosper."