Standard Life Aberdeen outflows top £31bn as Gars continues to struggle

Standard Life Aberdeen has reported outflows of £31bn in its full year results, six months after the mega merger at the Scottish fund houses completed.

In August 2017, Standard Life and Aberdeen Asset Management joined forces to become Standard Life Aberdeen, a giant global asset management powerhouse running £655bn assets.

In its full year results, published today, the firm reported net outflows of £31bn for 2017, adding to the £36.8bn loss for the businesses in 2016.

Outflows from Standard Life’s flagship Gars fund continued, coming in at £10.7bn, up from £4.3bn in 2016 as a result of a slowdown in gross inflows and more redemptions from investors.

Outflows for the Aberdeen Standard Investments arm were £22.1bn in 2017, down from £26bn for the previous year, while outflows from equity products decreased to £8.2bn from £13.9bn.

The company says last year’s outflows were impacted by “mixed short-term investment performance”.

Overall, assets under management and administration slightly increased to £654.9bn from the £647.6bn reported for 2016. Profits before tax remained steady  at £1bn.

Despite the outflows, the company says it is in a “strong position” following a 2017 of “unprecedented changes” for the business which was completing its merger. It expects to have completed around 75 per cent of the work involved in the merger by 2019.

In a joint statement, co-chief executives Keith Skeoch and Martin Gilbert say:”We’re making good strategic progress in building a world-class investment company. We have continued to deliver for clients, helping to grow assets and dividends and our integration is on track. Investment performance has been mixed, and we have seen net outflows over the year. However, with over £80bn of gross inflows, there’s momentum behind us.

“We continue to innovate, launch new funds and win new mandates. Our pensions and savings business has had a particularly strong year with record flows.”

The asset manager launched 22 funds in 2017.

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  1. Seems that investors do not share their confidence.

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