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Drawdown boost pushes Standard Life pension profits up 7%

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Standard Life saw pre-tax profits in its pensions and savings business grow 7 per cent to £151m in the first half of 2016, up from from £141m last year.

In its half year results, published today, the group said assets under administration in the division grew by 6 per cent to £139.2m from £131.6m in the same period in 2015.

Net inflows in the firm’s advised platform also increased to £2.1bn with assets under administration up 20 per cent to £28bn year-on-year.

In particular, the firm’s drawdown proposition increased by 8 per cent to £14.7bn in the first six months of 2016.

Standard Life chief executive UK & Europe Paul Matthews says: “Our UK pensions and savings business continues to deliver for customers through our leading savings and investment solutions.

“Wrap, our market-leading adviser platform, celebrates its tenth anniversary this year and continues to see strong demand from financial advisers with assets now £28bn. Our agreement to acquire the Elevate platform will further strengthen our position in the adviser market.”

However, the firm saw wholesale net outflows of £400m due to “a challenging environment for mutual funds” representing 2 per cent of AUM standing at £47.3bn.

Overall, assets under administration for the group were up 7 per cent to £328bn from £307.4m for the whole 2015, helped by gross inflows of £20.6bn and net inflows of £4.1bn.

Standard Life chief executive Keith Skeoch says: “Standard Life continues to make good progress towards building a world-class investment company, against a backdrop of volatile investment markets, by growing assets, profits, cash flows and returns to shareholders.

“Despite elevated uncertainty we are benefiting from our strong long-term relationships with a broad range of clients and customers who reacted in different ways to the changing market environment.”

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. Ah Drawdown! Evidently it makes money for providers, it makes money for advisers, but one may ask how much does it make for the customers?

  2. When the complaints come in later Harry…… Written on the same day that I read that ill health annuities continue to fall.

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