Standard Life Investments, the global fund manager, enjoyed a record breaking first half to 2014 which continues the tremendous momentum the company has seen over the past ten years.
The first half of 2014 saw third party net inflows of AUD 7.7bn, record third party assets under management (AUM) of AUD 195.6bn, record total AUM of AUD 353.5bn and record operating profit before tax of AUD 189.8m.
Keith Skeoch, CEO, Standard Life Investments said “I am privileged to have been the CEO at Standard Life Investments for just over ten years now and pleased to be able to report another strong set of half year results. However, as a firm believer in the benefits of long term active investing, what pleases me most are the strong relationships we have established with institutional and retail clients around the world over the past ten years. A defining decade for Standard Life Investments which, despite some of the most volatile and challenging markets experienced in recent times, has seen:
- Third party AUM increase over six-fold from AUD 39.5bn to AUD 195.6bn*
- An unbroken decade of third party net inflows with cumulative net inflows of AUD 120.9bn representing a ten year CAGR of 14%, accounting for two-thirds of the increase in AUM
- Third party net inflows from overseas clients increase from 3% to 57%
- Operating profit increase over ten-fold from AUD 15.5m to AUD 189.8m
- Excellent investment performance with third party AUM above benchmark: one year 87%; three years 89%; five years 91%; ten years 81%
- Standard Life Investments become the largest active manager of purely UK Pension Assets, up from 20th position in 2004**
- Standard Life Investments move from 39th in 2004 to 5th in 2014 for UK retail AUM***
“The strength of our investment performance and net inflows over the last decade mark Standard Life Investments out as one of the leading asset managers. Our success and rapid growth as an active fund manager in a decade that saw a general increase in the use of passive strategies is testimony to our ‘Focus on Change’ investment philosophy. There is also growing global recognition of the benefits clients can gain by working with a manager who is seen to add value by taking a long term approach to investing.
“The addition of Standard Life Wealth and Ignis Asset Management present a great opportunity for us going forward. They will help deepen our investment capabilities, broaden our third party client base and strengthen our strategic position.
“I am confident that as we look forward to the next ten years Standard Life Investments has the proven investment expertise and global distribution capabilities that will continue to deliver both superior investment performance and innovative solutions for our clients.”
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*If the AUD 107.6bn of Ignis Asset Management funds, as at 31 Dec 2013, are included the increase is over ten-fold. ** Source FT research. *** Standard Life Investments