Standard Life Investment assets rise to £253.2bn despite Ignis outflows

Standard-Life-Building-700x450.jpgStandard Life Investments has seen its assets under management rise to £253.2bn in 2015, with a 33 per cent increase in pre-tax operating profit, despite outflows from the Ignis business.

The asset management division posted a 33 per cent increase in pre-tax operating profit, from £257m to £342m.

Total assets under management at SLI rose to £253.2bn in the year, up from £245.9bn in 2014. The asset management division also grew third-party assets by 11 per cent, to £130.5bn for the year.

SLI’s inflows were offset by £2.5bn of outflows from the Ignis business, which includes a £1.7bn divestment from a “low revenue margin mandate”. This is a slowing of the £4.3bn of outflows seen in 2014 and leaves assets in the Ignis group at £11.1bn.

In particular, the net outflows from the Ignis Absolute Return Government Bond fund reduced to £500m in the year, down from £2.6bn of net outflows in 2014.

Net retail flows for SLI stood at £9.3bn for the year, significantly up on 2014’s £5.2bn net inflows, taking retail assets to £45.9bn at the end of the year.

In particular the MyFolio multi-manager business saw assets rise to £8.1bn, with 85 per cent being third-party assets.

Fixed income products saw £300m of net inflows, up on 2014’s £1bn of net outflows. Real estate inflows were down, at £300m compared to £700m for 2014, while equity inflows were flat compared to 2014’s £1.3bn in net outflows.

Standard Life Wealth saw net flows of £200m for the year, with outflows cancelling out a lot of the £900m of inflows seen in the year. Assets in the division now stand at £6.5bn.

Standard Life’s platform performed strongly, with record net inflows of £4.4bn. Assets under administration rose 22 per cent from £20.9bn to £25.5bn, with the number of advisers using the Standard Life Wrap increasing by 123 to 1,463.

Drawdown assets rose 18 per cent from £11.5bn to £13.6bn, while 250,000 new auto-enrolment customers were added during the year.

The board has proposed raising the total dividend 7.8 per cent from last year. It proposes issuing a final dividend of 12.34p per share to make a total of 18.36p per share for the year, compared to 17.03p per share for 2014.

Pay and benefits

The provider has also announced former chief executive David Nish continues to be paid his £835,000 salary while on gardening leave until 31 March, and will continue to be eligible for his bonus, pro-rated.

Keith Skeoch has seen his salary increase by £200,000 since becoming chief executive of the group, with total salary rising to £700,000. This is 16 per cent lower than Nish’s salary for the job previously.

In addition Skeoch will be eligible for a short-term bonus of 175 per cent of salary, a reduction on his previous 365 per cent of salary bonus.

He is also eligible for a bonus of up to 500 per cent of salary, vesting over five years, based on group results, and shares of up to 500 per cent of salary.

Skeoch had total renumeration of £3.6m in 2015, including a £1.5m bonus, basic salary of £574,000 and taxable benefits of £36,000. He also received £1.4m of long-term bonus for the year that will vest in March 2016.

However, this was lower than the previous year when he had total renumeration of £3.6m for the year, with a higher long-term incentive payment of £3.7m.