Stephen Bird

SLA’s full-year results revealed that fee-based revenue of £1.425 billion was also down from £1.634bn, however, the financial services firm blamed this on the impact of 2019 outflows.

Adjusted operating expenses were reduced by 10% to £1.206bn, due to cost control initiatives and efficiencies, including around £20m of Covid-related savings in discretionary costs.

The firm reported improved investment performance, with 66% of assets under management being above benchmark over three years - up from 60% in 2019.

Net outflows reduced to £3.1bn, from £17.4bn in 2019, driven by improvements in institutional and wholesale net flows. SLA also reported a strong surplus capital position of £2.3bn, up from £1.7bn in 2019, benefiting from Indian stake sales.

The firm’s board is recommending a final dividend of 7.3p per share, bringing the total dividend for the year to 14.6p per share.

Commenting on the results, Stephen Bird, chief executive officer, said: “We have seen growing momentum in the second half of 2020 with improved investment performance and flows which represent an inflection point as we pull out of the post-merger era

“We remain on track to deliver targeted synergies and have identified more that we can deliver. We have exited some non-core businesses and made an acquisition that has extended our capabilities in private markets. We have simplified and clarified leadership structures across the business and placed a refreshed focus on Asia.

“We have a clear vision; we will focus on the future to enable our clients to be better investors. To do this we will pursue efficient, sustainable growth by ensuring that our product capabilities, technology and performance are first class.”

He added: “Our pursuit of client-led growth, combined with a focus on efficiency and careful deployment of capital, will enable us to generate sustainable value for our shareholders.

“We have three growth vectors – Investments, Adviser and Personal. Thanks to our strong capital position, we have strategic flexibility around how we grow these businesses and we have set out clear ambitions.”

He concluded: “At this reset point for this business, we have rebased to set firm foundations on which we can build something great. I’m excited about what’s to come.”