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Pressure on at newly-merged company

Investor outflows continue at Standard Life Aberdeen

Martin GilbertInvestors continued to withdraw funds from Standard Life Aberdeen though total assets under management were down only slightly.

In its first update since the £11 billion merger of Standard Life and Aberdeen Asset Management, the company said the outflows were in line with expectations.

Assets under management at Edinburgh-based Aberdeen Standard Investments dropped by £10.9bn to £569.7bn.

Total assets under management for the nine months to the end of September were stable at £646.2bn compared to £647.6bn at the end of last year.

The company admitted the industry was under pressure but said it was seeing “good momentum” across a wide range of products and particularly strong demand for emerging market debt and multi-asset solutions.

Joint chief executive Martin Gilbert (pictured) said: “I can count on one hand the number of clients who have left.

“What excites me is that we’re moving away from being perceived as an emerging markets specialist,”

Mr Gilbert and co-chief executive Keith Skeoch said in statement: “Standard Life Aberdeen is making good progress towards creating a world-class investment company.

“The integration of Aberdeen Standard Investments is on track and we are delighted with the way the teams are coming together to deliver for clients.

“While the combined business has experienced net outflows, these were in line with our expectations given the asset classes affected and the structural outflows from our lower margin mature books.

“Nevertheless the momentum in our business is good with £58.6bn of gross inflows during the period. We continue to innovate, launching new funds with strong backing from clients and winning new mandates across a wide range of investment strategies. Standard Life, our pensions and savings business has had record flows year to date demonstrating further strength and diversity of our business.

“The successful lPO of HDFC Life in India and our recent registration as a private securities fund manager in China, have further strengthened our business. We remain confident of delivering long-term value for our clients, our people and our shareholders.”

Shares in the company closed up just over 1% at 418.2p.



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