Standard Life Aberdeen‘s advice arm 1825 continues to make a loss three years after its launch.
In financial results for the first six months of 2018, SLA says it continues to aim for national UK coverage for 1825.
Two acquisitions this year taking the business to 80 financial planners across 14 locations providing face-to face and telephone advice to around 9,000 clients.
While assets under advice increased £700m to £4.3bn, the advice channel still made a loss of £1m in total.
This compares to a £14m profit generated from from SLA’s platforms Wrap, Elevate and Parmenion.
Though fee-based revenue improved by £10m, losses at 1825 only improved by £1m from the first half of 2017, where it made a £2m loss.
The combined assets under advice of the two firms 1825 acquired the whole share capital of during the first six months of 2018 was £750m.
SLA says in the results: “We will continue to use our expertise to help people get good advice and make better financial choices for their future.”
SLA’s Global Absolute Return Strategies fund has continued to suffer billions in outflows, the results also show.
For the first half of 2018, Gars net outflows have come in at £5.3bn. While this is slightly down on the first half of 2017, where the fund saw £5.6bn in outflows, SLA notes the numbers “continue to conceal more encouraging flows” across its multi-asset range more broadly.
The MyFoilo range, for example, which hit £10bn in 2016 and has recently cut charges and expanded its offering, delivered £800m in net inflows.
SLA’s results read: “While Gars performance is behind benchmark over one and three years and behind its target over one, three and five years, it has continued to operate within the targeted volatility range, which is a key element of its design.”
Standard Life Aberdeen continues to hold onto its three platforms: Wrap, Elevate and Parmenion.
Parmenion saw net inflows of £600m, compared to £2.5bn into Wrap and Elevate. However, flows into the latter two platforms were down significantly from £3.7bn in the first half of 2017.