Standard Life beats Q3 forecast as AUM break £300bn

The Edinburgh-based firm grew total assets under management by £2.4 billion in the three months to September, helped by winning business in the UK and overseas.

AUM hit to £301.9 billion, compared with £296.6bn at the beginning of the financial year, a figure ahead of the £297bn predicted in by City analysts.

The firm revealed 64 per cent of inflows in the year to date had come from outside the UK as it continues to expand its global reach.

To that end, Q3 saw Standard Life agree terms to increase its stake in its HDFC Life joint venture in India from 26 per cent to 35 per cent for £170m.

The move followed a decision by the Indian government of Narendra Modi to increase the limit on foreign direct investment in the local insurance sector.

HDFC and Standard Life, which was the first private life insurance company to be granted a licence to operate in India launched the joint venture in 2000.

However, the company’s strong position in workplace pensions in the UK also helped customer numbers increase.

Keith Skeoch, who succeeded David Nish as chief executive in August, said: “Standard Life has performed well against a backdrop of volatile investment markets.

“We have delivered consistently strong investment performance and record third-party net inflows of £10bn across our institutional and wholesale channels.”

He added: “We remain well positioned with clients and customers to deliver growth as we continue to innovate and increase collaboration across our businesses.”

Standard Life said it has added 190,000 new customers so far this year, including 70,000 in Q3 through auto-enrolment into company pension schemes.

Mr Skeoch, who ran the Standard Life Investments arm until taking charge of the group, also said the integration of Ignis asset Management business it bought for £390 million last year is on track and shrugged off the fact clients withdrew £2.3bn funds from the Glasgow-based firm, net of £1.7bn new investments, in the first nine months.

Some withdrawals occurred in the first quarter following the departure of a fixed income team led by Russ Oxley.

Chief financial officer Luke Savage noted that Standard Life plans to complete the integration of Ignis before buying any other fund managers, a process projected to be completed next year.