SLI profits and AUM hit record highs

Standard Life Investments has achieved a “defining decade”, says chief executive officer Keith Skeoch, as operating profits and third party AUM all touch record highs.

Results for the first half of 2014 released by Standard Life last week reveal that inflows at SLI actually fell 43 per cent in the six months to June although operating profits did increase by 9 per cent to reach £104m over the period.

However looking over the past decade, SLI says it has seen an “unbroken record” of net third party inflows with cumulative net inflows totalling £60.6bn.

Third party assets under management have also jumped from £15.9bn to reach a record high of £108bn over the same period.

SLI also notes that if the £59bn worth of assets currently managed by Ignis Asset Management, which the firm acquired this year, are included then AUM has actually increased over ten times in the last ten years.

Skeoch says the acquisition of Ignis along with the merging of Standard Life Wealth this year will “deepen our investment capabilities, broaden out third party client base and strengthen our strategic position.”

Operating profit before tax has also risen substantially over the decade from £6.4m to £104m at the end of the first half of 2014.

Skeoch adds that the performance of SLI over the last ten years has helped the firm stand out as “one of the leading asset managers.

He says: “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.”