TIDMSL.
RNS Number : 6020G
Standard Life plc
09 August 2016
Standard Life plc
Half year results 2016
9 August 2016
Part 1 of 4
Diversification delivers growth in challenging markets
-- Assets under administration up 7% to GBP328.0bn (FY 2015:
GBP307.4bn) helped by gross inflows into our growth channels of
GBP20.6bn (H1 2015: GBP20.5bn) and net inflows of GBP4.1bn (H1
2015: GBP7.4bn)
-- Institutional and Wholesale channels benefiting from diversification:
-- Global Institutional business AUM up to GBP78.1bn helped by
net inflows of GBP2.0bn representing an annualised 6% of opening
AUM
-- Wholesale AUM up to GBP47.3bn with net outflows of GBP0.4bn
in a challenging environment for mutual funds, representing an
annualised outflow of 2% of opening AUM
-- Third party(1) investment performance ahead of benchmark over
1 year: 29%; 3 years: 85%; 5 years: 84%
-- Workplace and Retail channels continuing to see steady growth
with net inflows of GBP2.8bn (H1 2015: GBP2.9bn), representing an
annualised 7% of opening AUA:
-- Assets on our leading adviser Wrap platform up 20%
year-on-year to GBP28.0bn (FY 2015: GBP25.5bn; H1 2015: GBP23.3bn)
with net inflows in H1 2016 up 3% to GBP2.1bn
-- Regular contributions into workplace pensions up 4% to GBP1.5bn
-- Fee based revenue up 4% to GBP794m representing 93% of total
operating income, with revenue across growth channels up 8% to
GBP577m
-- Underlying performance* up 14% and operating profit(2) before
tax up 18% to GBP341m with diluted operating EPS up 16% to 13.5p
(H1 2015: 11.6p)
-- Profit for the period attributable to equity holders of
GBP226m (H1 2015: GBP69m) and basic EPS of 11.5p (H1 2015:
3.2p)
-- Underlying cash generation up 10% to GBP254m and a strong and
stable Solvency II surplus of GBP2.2bn(3)
-- Creating shareholder value in India:
-- Increased our stake in HDFC Life from 26% to 35% for GBP179m
-- HDFC Life has agreed terms that, subject to approvals, will
see the combination of the life insurance businesses of HDFC Life
and Max Life, creating the leading private sector life insurer in
India
-- The enlarged HDFC Life in which Standard Life would hold a
24.1% stake will, as a result of the combination and subject to
approvals, have listings on the Bombay Stock Exchange and the
National Stock Exchange of India
-- Interim dividend up 7.5% to 6.47p
Keith Skeoch, Chief Executive, commented:
"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.
The increase in the stake in HDFC Life and the proposed combination
with Max Life will increase our exposure to the attractive and fast
growing Indian market, while the agreement to acquire Elevate will
strengthen our leading position in the advised platform market.
"Targeted investments to further our diversification agenda,
together with our sharpened focus on operational efficiency will
increase our pace of strategic delivery. This will ensure we
continue to meet changing client and customer needs and generate
sustainable returns for our shareholders."
Unless otherwise stated, all figures are reported on a
continuing operations basis(4) .
* Underlying performance is operating profit before tax after
excluding the impact of spread/risk operating actuarial assumption
changes and specific management actions. A full reconciliation to
profit for the period attributable to equity holders of Standard
Life plc is presented on page 2 of this release.
Financial highlights
H1
2016 H1 2015
Profitability GBPm GBPm
============================================================================= ====== ======== =========
Fee based revenue 794 761
Spread/risk margin 63 40
====================================================================================== ======== =========
Total operating income 857 801
Total operating expenses (566) (533)
Capital management 13 1
Share of associates' and joint
ventures' profit before tax 37 30
====================================================================================== ======== =========
Underlying performance 341 299
====================================================================================== ======== =========
One-off contribution to with
profits business in Germany
(operating expenses) - (9)
Operating profit before tax 341 290
====================================================================================== ======== =========
Tax on operating profit (69) (37)
Share of associates' and joint
ventures' tax expense (5) (5)
====================================================================================== ======== =========
Operating profit after tax 267 248
Non-operating items (61) (158)
Tax on non-operating items 20 19
Singapore included in discontinued
operations segment(5) - (40)
====================================================================================== ======== =========
Profit for the period attributable to equity
holders of Standard Life plc 226 69
====================================================================================== ======== =========
IFRS profit from discontinued operations(5) - 1,142
================================================================================= ======== =========
Total IFRS profit for the period attributable
to equity holders of Standard Life plc 226 1,211
====================================================================================== ======== =========
H1
2016 H1 2015
Underlying performance GBPm GBPm
====================================================================================== ======== =========
Standard Life Investments 176 154
UK spread/risk margin 55 38
UK excluding spread/risk margin 96 103
=============================================================================== ==== ======== =========
UK Pensions and Savings 151 141
Europe Pensions and Savings 18 15
Hong Kong (2) 6
Share of associates' and joint
ventures' profit before tax 21 15
=============================================================================== ==== ======== =========
India and China 19 21
Other (23) (32)
=============================================================================== ==== ======== =========
Underlying performance 341 299
=============================================================================== ==== ======== =========
H1
Other performance indicators 2016 H1 2015
=============================================================================== ==== ======== =========
Operating profit before tax (GBPm) 341 290
Underlying cash generation (GBPm) 254 230
Assets under administration (GBPbn) 328.0 307.4(6)
Net inflows (GBPbn) 0.9 3.4
=============================================================================== ==== ======== =========
H1
Other financial highlights 2016 H1 2015
=============================================================================== ==== ======== =========
Solvency II capital surplus (GBPbn):
Regulatory view 2.2(3) 2.1(6)
Investor view 3.0(3) 3.3(6)
Solvency II solvency ratio: Regulatory
view 154%(3) 162%(6)
Investor view 200%(3) 222%(6)
Profit for the period attributable
to equity holders of Standard Life
plc (GBPm) 226 69
Diluted operating EPS (p)(5,7) 13.5 11.6
Diluted EPS (p)(5,7) 11.4 3.2
Basic EPS (p)(5,7) 11.5 3.2
Interim dividend per share (p) 6.47 6.02
=============================================================================== ==== ======== =========
Group performance
Standard Life has continued to deliver profitable growth and has
shown resilience in volatile markets. We have grown assets, revenue
and profits as we continue to make good progress in building a
world-class investment company.
Assets and flows
Assets under administration (AUA) increased by 7% to GBP328.0bn
benefiting from net inflows of GBP0.9bn and positive market and
other movements of GBP19.7bn.
Gross inflows were GBP21.8bn (H1 2015: GBP21.7bn) including
inflows of GBP20.6bn (H1 2015: GBP20.5bn) into our growth channels
primarily Standard Life Investments' Institutional and Wholesale,
and Pensions and Savings' Workplace and Retail.
Net inflows of GBP0.9bn (H1 2015: GBP3.4bn) included net inflows
of GBP4.1bn (H1 2015: GBP7.4bn) into our growth channels. This was
partly offset by net outflows of GBP2.9bn (H1 2015: GBP3.6bn) from
the natural run-off of fee business mature books. Net inflows also
reflected ongoing progress in our India and China associate and
joint venture life businesses which generated net inflows of
GBP0.2bn (H1 2015: GBP0.1bn). Scheduled net outflows from annuities
amounted to GBP0.5bn (H1 2015: GBP0.5bn).
Standard Life Investments continued to deliver strong long-term
investment performance growing total assets under management (AUM)
by 6% to GBP269.0bn (FY 2015: GBP253.2bn). Within this, third party
AUM in our growth channels increased by 6% to GBP137.7bn (FY 2015:
GBP130.5bn) with the benefits of our increasingly diversified
business reflected in net inflows of GBP1.6bn into Institutional
and Wholesale. Within Standard Life Wealth, net inflows increased
to GBP0.2bn while net outflows from our Ignis business improved to
GBP0.1bn. Strategic partner life business AUM of GBP131.3bn (FY
2015: GBP122.7bn), which includes mature books managed on behalf of
Standard Life Group and the Phoenix Group, reflects the benefit of
positive market movements which more than offset scheduled outflows
from annuities and conventional with profits as well as outflows
from the assets managed for the Phoenix Group.
AUA in UK Pensions and Savings of GBP139.2bn (FY 2015:
GBP131.6bn) also benefited from steady flows in our growth
channels. Net inflows into Workplace and Retail of GBP2.8bn
represented an annualised 7% of opening assets. Regular
contributions into Workplace increased by 4% to GBP1.5bn (H1 2015:
GBP1.4bn) while our Wrap platform continues to lead the UK adviser
market(8) and attracted net inflows of GBP2.1bn (H1 2015:
GBP2.1bn).
Steady net inflows in Europe, India and China also contributed
to the growth in AUA.
Market movements of GBP19.7bn benefited from the positive impact
of foreign exchange as Sterling weakened against other currencies
and a reduction in bond yields following the outcome of the EU
referendum.
Profitability
Operating profit before tax increased by 18% to GBP341m (H1
2015: GBP290m). Fee based revenue increased to GBP794m (H1 2015:
GBP761m) with revenue generated by our growth channels, up 8% to
GBP577m (H1 2015: GBP535m), more than offsetting a GBP9m reduction
in revenue from mature books to GBP217m (H1 2015: GBP226m).
Spread/risk margin of GBP63m (H1 2015: GBP40m) included a GBP22m
benefit from an acceleration of payments from our main with profits
fund relating to changes to the scheme of demutualisation in
response to the transition to Solvency II. Our cost/income ratio(9)
improved to 62% (FY 2015: 63%) and with an ongoing focus on
operational efficiency, we will continue to drive our cost/income
ratio to significantly below its current level.
Profit for the period attributable to equity holders was GBP226m
(H1 2015: GBP69m) reflecting increased operating profit and a
decrease in non-operating costs including restructuring
expenses.
Proposed dividend
The Board has proposed an interim dividend of 6.47p per share
(H1 2015: 6.02p), an increase of 7.5%. We continue to apply our
existing progressive pence per share dividend policy taking account
of market conditions and the Group's financial performance.
Group capital surplus
Our solvency position remains strong and stable with a Solvency
II capital surplus of GBP2.2bn(3) (FY 2015: GBP2.1bn), representing
solvency cover of 154%(3) (FY 2015: 162%).
These figures do not recognise additional entity level capital
of GBP0.8bn. This additional capital helps absorb market and other
volatility, resulting in a resilient Solvency II capital surplus.
For example, the Solvency II capital surplus of GBP2.2bn(3) would
change by GBP0.1bn or less following a 20% rise or fall in
equities; 100bps rise or fall in fixed interest yields; or a 50bps
rise or fall in credit spreads.
The solvency cover prescribed by Solvency II regulations of 154%
is diluted by the inclusion of GBP1.1bn of capital requirements for
with profits funds and our defined benefit pension scheme. These
capital requirements are covered in full by surplus assets in those
funds.
Adjusting for the treatment of with profits funds and the
defined benefit pension scheme and including the additional entity
level capital, the Investor view surplus is GBP3.0bn(3) (FY 2015:
GBP3.3bn) with a solvency ratio of 200%(3) (FY 2015: 222%). The
reduction in surplus mainly reflects the amount paid to increase
our stake in HDFC Life of GBP0.2bn.
Outlook
The first half of 2016 can only be characterised as a
challenging external environment. While it would be rash to
extrapolate the economic and political noise of the last six
months, it is clear that the uncertainty that always accompanies
economies, politics and markets will remain elevated. This will
reinforce the global trends that are shaping the savings and
investment landscape, which Standard Life's long-term strategy is
designed to take advantage of.
We are already 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.
Targeted investments to further our diversification agenda,
together with a sharpened focus on operational efficiency as we
drive our cost income ratio to significantly below its current
level, will increase our pace of strategic delivery. This will
ensure we continue to meet changing client and customer needs and
generate sustainable returns for our shareholders.
Business highlights
Standard Life has a simple and consistent business model that
continues to drive growth in assets, maximise revenue and lower
unit costs. This drives higher profits, and together with
optimisation of our balance sheet, delivers value for our
shareholders.
We continue to make good progress in each of our businesses
focusing on our key growth channels:
Institutional and Wholesale driving profit in Standard Life
Investments
-- Benefiting from strong long-term investment performance,
ongoing product innovation, high levels of client service and an
increasingly global client base
-- Operating profit before tax up 14% to GBP176m (H1 2015:
GBP154m), benefiting from an 11% increase in third party revenue
from our growth channels to GBP331m, a continuing shift in mix
towards higher margin products and controlled growth in
expenses
-- Average revenue yield on third party AUM from our growth
channels increased to 53bps (FY 2015: 52bps)
-- EBITDA up 13% to GBP182m (H1 2015: GBP161m) with EBITDA margin up to 42% (H1 2015: 40%)
-- Our associate, HDFC AMC, a leading Indian private asset
manager with AUM of GBP20.6bn (FY 2015: GBP17.4bn), contributed
GBP16m (H1 2015: GBP15m) to operating profit
-- Third party net inflows from our growth channels of GBP1.7bn
(H1 2015: GBP5.2bn) including net inflows of GBP2.0bn (H1 2015:
GBP1.8bn) into our increasingly global Institutional business and
resilient Wholesale performance with net outflows of GBP0.4bn (H1
2015: GBP5.3bn net inflows) in a challenging environment for mutual
funds
-- MyFolio AUM up 10% to GBP8.9bn (FY 2015: GBP8.1bn) with c85%
distributed through UK Pensions and Savings
-- Strong long-term money weighted average investment
performance with third party(1) AUM above benchmark: 1 year 29%; 3
years 85%; and 5 years 84%
Workplace and Retail driving continuing growth in UK Pensions
and Savings
-- Our UK Pensions and Savings business continues to benefit
from structural market changes and careful strategic positioning,
as well as its attractive propositions and investment solutions
-- Operating profit before tax of GBP151m (H1 2015: GBP141m)
reflects ongoing momentum in our Workplace and Retail fee business
growth channels and increased spread/risk margin
-- Spread/risk margin of GBP55m (H1 2015: GBP38m) benefited from
GBP16m (H1 2015: GBP6m) of asset liability management and an GBP18m
benefit from the acceleration of payments from our main with profit
fund
-- UK fee revenue increased to GBP321m (H1 2015: GBP314m)
benefiting from an 8% increase in Workplace and Retail revenue to
GBP197m (H1 2015: GBP182m) which more than offset a reduction in
Mature Retail revenue to GBP124m (H1 2015: GBP132m). Average fee
revenue yield remains stable at 59bps (FY 2015: 59bps).
-- UK cost/income ratio stable at 59% (FY 2015: 59%) and
reflects an additional GBP7m expenses from the scaling up of our
financial advice business, 1825
-- Our Wrap platform continues to lead the market(8) with net
inflows of GBP2.1bn and AUA up 10% to GBP28.0bn (FY 2015:
GBP25.5bn), while the number of adviser firms using our Wrap
platform increased by 30 to 1,493
-- 21% of Wrap platform AUA of GBP28.0bn is managed by Standard Life Investments
-- Agreed to acquire the Elevate platform from AXA and expect
the transaction to complete in H2 2016
-- Assets in our market-leading drawdown propositions increased
by 8% to GBP14.7bn (FY 2015: GBP13.6bn)
-- Continued building 1825 by completing two acquisitions and
announcing our intention to make a further two acquisitions,
broadening our reach across the UK
Ongoing growth in Europe fee AUA
-- Europe operating profit increased to GBP18m (H1 2015: GBP6m)
and includes a spread/risk benefit of GBP4m from the acceleration
of payments from our main with profits fund. H1 2015 included a
one-off GBP9m negative impact from shareholder support provided to
the German with profits business.
-- Fee AUA increased 15% to GBP20.7bn (FY 2015: GBP18.0bn)
driven by favourable foreign exchange movements and continued
momentum in our Europe growth business
Continued progress in India and China associate and joint
venture life businesses
-- Operating profit before tax of GBP19m (H1 2015: GBP21m)
reflects higher profit from associate and joint venture life
businesses which increased to GBP21m (H1 2015: GBP15m) partly
offset by lower profitability in our Hong Kong business which is
continuing to adapt to regulatory change
-- Increased stake in HDFC Life from 26% to 35% for GBP179m
-- HDFC Life has agreed terms that, subject to approvals, will
see the combination of the life insurance businesses of HDFC Life
and Max Life, creating the leading private sector life insurer in
India
-- The enlarged HDFC Life in which Standard Life would hold a
stake of 24.1% will, as a result of the combination and subject to
approvals, have listings on the Bombay Stock Exchange and the
National Stock Exchange of India
-- In China, Heng An Standard Life continues to build a
sustainable and profitable business with strong growth in new
business sales in H1 2016 (up 31%)
For a PDF version of the full half year results announcement,
please click here:
http://www.rns-pdf.londonstockexchange.com/rns/6020G_-2016-8-8.pdf
For further information please contact:
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Newswires and online publications
A conference call for newswires and online publications will
take place on Tuesday 9 August at 7.15am (UK time). Participants
should dial +44 (0)20 3059 8125 and quote Standard Life half year
results 2016. A replay facility will be available for seven days
after the event. To access the replay please dial +44 (0)121 260
4861 followed by the passcode 3749117#.
Investors and Analysts
The half year results 2016 analyst and investor presentation
will take place on Tuesday 9 August at 8.30am (UK time). The
presentation will take place at Goldman Sachs International, River
Court, 120 Fleet Street, London EC4A 2BE. There will also be a live
webcast and teleconference starting at 8.30am, both of which will
have the facility to ask questions at the end of the formal
presentation. Participants should dial +44 (0)20 3059 8125 and
quote Standard Life half year results 2016. A replay facility will
be available for seven days after the event. To access the replay
please dial +44 (0)121 260 4861 followed by passcode 4677589#.
Notes to Editors:
1. Excluding strategic partner life business.
2. Operating profit is IFRS profit before tax adjusted to remove
the impact of short-term market driven fluctuations in investment
return and economic assumptions, restructuring costs, amortisation
and impairment of intangible assets acquired in business
combinations, gain or loss on the sale of a subsidiary, associate
or joint venture and other significant one-off items which are not
indicative of the long-term operating performance of the Group.
3. Based on draft regulatory returns.
4. Continuing operations excludes the Canadian and Singapore
operations reported as discontinued operations in 2015.
5. Under IFRS 5, Singapore did not constitute a discontinued
operation and was included under continuing operations in the IFRS
condensed consolidated income statement. Therefore the analysis of
Group operating profit includes the reclassification of Singapore
results between discontinued and continuing operations. The Group
diluted operating earnings per share from continuing operations
excludes Singapore while the Group diluted and basic earnings per
share from continuing operations includes Singapore.
6. As at 31 December 2015 (Solvency II as at 1 January 2016).
7. The Company undertook a share consolidation in 2015 followed
by a return of value to shareholders. In accordance with IAS 33,
earnings per share were not restated following the share
consolidation as there was an overall corresponding change in
resources. As a result of the share consolidation, earnings per
share from continuing operations for the six months ended 30 June
2016 are not directly comparable with prior periods.
8. Source: Fundscape latest available net inflow data.
9. On a rolling 12 months basis, operating expenses divided by
operating income (including share of associates' and joint
ventures' profit before tax).
10. For more detailed information on the statutory results of
the Group refer to the half year results 2016.
Forward-looking statements
This document may contain certain "forward-looking statements"
with respect to certain of Standard Life's plans and its current
goals and expectations relating to its future financial condition,
performance, results, strategy and objectives. Statements
containing the words "believes", "intends", "expects", "plans",
"pursues", "seeks" and "anticipates", and words of similar meaning,
are forward-looking. By their nature, all forward-looking
statements involve risk and uncertainty because they relate to
future events and circumstances which are beyond Standard Life's
control including among other things, UK domestic and global
political, economic and business conditions, market related risks
such as fluctuations in interest rates and exchange rates, and the
performance of financial markets generally; the policies and
actions of regulatory authorities, the impact of competition,
inflation, and deflation; experience in particular with regard to
mortality and morbidity trends, lapse rates and policy renewal
rates; the timing, impact and other uncertainties of future
acquisitions or combinations within relevant industries; and the
impact of changes in capital, solvency or accounting standards, and
tax and other legislation and regulations in the jurisdictions in
which Standard Life and its affiliates operate. This may for
example result in changes to assumptions used for determining
results of operations or re-estimations of reserves for future
policy benefits. As a result, Standard Life's actual future
financial condition, performance and results may differ materially
from the plans, goals, and expectations set forth in the
forward-looking statements. Standard Life undertakes no obligation
to update the forward-looking statements contained in this press
release or any other forward-looking statements it may make.
Inside Information
This announcement contains inside information which is disclosed
in accordance with the Market Abuse Regulation which came into
effect on 3 July 2016.
Supplementary information
Analysis of flows, AUA and revenue by channel
We analyse our simplified business in three distinct
components:
-- Growth channels which are sources of strong scalable growth
and diversification by geography, asset class, product, client and
customer. These primarily comprise the Institutional and Wholesale
channels of Standard Life Investments, and the Workplace and Retail
channels of UK Pensions and Savings.
-- Mature books of largely legacy pension and insurance business
that provide a stable contribution to revenue and profit as well as
being a source of financial strength
-- Our strategic associate and joint venture life businesses in
India and China that are sources of future potential growth and
diversification
Fee
Gross Fee based revenue
flows Net flows AUA revenue yield
H1 H1 H1 H1 H1 H1 H1 H1 H1
2016 2015 2016 2015 2016 2015 2016 2015 2016
GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPm GBPm bps
--------------------------- ------ ------ ------ ------ ------- ------- ------ ---------- ---------
Institutional 8.4 5.4 2.0 1.8 78.1 64.6 178 157 49
Wholesale 6.5 8.9 (0.4) 5.3 47.3 40.6 125 102 70
Workplace 2.0 2.1 0.8 1.1 34.0 33.2 91 88 54
Retail 4.1 3.6 2.0 1.8 45.7 40.4 106 94 49
Standard Life Wealth 0.5 0.4 0.2 - 6.7 6.3 24 19 79
Ignis(1) 0.3 1.3 (0.1) (1.9) 5.6 12.9 4 20 8
Europe Growth 0.7 0.7 0.3 0.3 10.4 9.0 39 32 71
Hong Kong - - - - 0.6 0.4 10 23 -
Fee business eliminations (1.9) (1.9) (0.7) (1.0) (19.5) (17.1) - - -
--------------------------- ------ ------ ------ ------ ------- ------- ------ ---------- ---------
Total Growth fee 20.6 20.5 4.1 7.4 208.9 190.3 577 535 60
--------------------------- ------ ------ ------ ------ ------- ------- ------ ---------- ---------
UK Mature Retail 0.4 0.4 (1.2) (1.2) 32.6 33.4 124 132 77
Europe Mature fee 0.3 0.4 0.1 0.2 10.3 7.9 47 50 129
Third party strategic
partner life business - - (1.4) (2.2) 43.0 42.1 34 34 20
Other fee including
CWP(2) - - (0.4) (0.4) 1.0 1.7 12 10 -
--------------------------- ------ ------ ------ ------ ------- ------- ------ ---------- ---------
Total Mature fee 0.7 0.8 (2.9) (3.6) 86.9 85.1 217 226 53
--------------------------- ------ ------ ------ ------ ------- ------- ------ ---------- ---------
Total fee 21.3 21.3 1.2 3.8 295.8 275.4 794 761 -
--------------------------- ------ ------ ------ ------ ------- ------- ------ ---------- ---------
Spread/risk 0.1 0.1 (0.5) (0.5) 16.1 15.4 - - -
Associate and joint
venture life businesses 0.4 0.3 0.2 0.1 3.5 2.2 - - -
Other - - - - 13.2 9.5 - - -
Other eliminations - - - - (0.6) (0.4) - - -
--------------------------- ------ ------ ------ ------ ------- ------- ------ ---------- ---------
Total 21.8 21.7 0.9 3.4 328.0 302.1 794 761 -
--------------------------- ------ ------ ------ ------ ------- ------- ------ ---------- ---------
1. In H1 2016 a number of Ignis funds were merged with other SLI
funds, resulting in a decrease in reported Ignis AUM of GBP5.6bn.
These assets are now included in Institutional (GBP4.0bn) and
Wholesale (GBP1.6bn).
2. Fee based revenue income from investment management expenses
charged directly to internal policyholder funds managed by Standard
Life Investments for the Standard Life Group. These policyholder
funds largely comprise assets across both growth channels and
mature books as well as conventional with profits. AUA and flows
comprise conventional with profits only.
Supplementary information continued
Assets under administration and net flows
Assets under administration (AUA) is a measure of the total
assets administered on behalf of individual customers and
institutional clients. It includes those assets for which we
provide investment management services, as well as those assets we
administer where the customer has made a choice to select an
external third party investment manager. As an investment company,
AUA and net flows are key drivers of shareholder value.
Assets under administration (summary)
6 months ended 30 June 2016
Opening Market Closing
AUA at Gross Net and other AUA at
1 Jan 2016 flows Redemptions flows movements 30 Jun 2016
GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
------------------- ------------------- ------------ ------- ------------ ------- ----------- -------------
Total Growth
channels 198.3 20.6 (16.5) 4.1 6.5 208.9
Total Mature Books
fee 82.0 0.7 (3.6) (2.9) 7.8 86.9
Total Mature Books
spread/risk 14.9 0.1 (0.6) (0.5) 1.7 16.1
Total Other 12.2 0.4 (0.2) 0.2 3.7 16.1
------------------- ------------------- ------------ ------- ------------ ------- ----------- -------------
Total AUA 307.4 21.8 (20.9) 0.9 19.7 328.0
------------------- ------------------- ------------ ------- ------------ ------- ----------- -------------
Growth channels Institutional 67.0 8.4 (6.4) 2.0 9.1 78.1
------------------
Wholesale 45.9 6.5 (6.9) (0.4) 1.8 47.3
Wealth 6.5 0.5 (0.3) 0.2 - 6.7
Ignis(1) 11.1 0.3 (0.4) (0.1) (5.4) 5.6
Standard Life
Investments 130.5 15.7 (14.0) 1.7 5.5 137.7
-------------------- ------------ ------- ------------ ------- ----------- -------------
Workplace 33.0 2.0 (1.2) 0.8 0.2 34.0
Retail(2) 42.6 4.1 (2.1) 2.0 1.1 45.7
UK Pensions and
Savings 75.6 6.1 (3.3) 2.8 1.3 79.7
-------------------- ------------ ------- ------------ ------- ----------- -------------
Europe Growth(2) 9.6 0.7 (0.4) 0.3 0.5 10.4
Pensions and
Savings 85.2 6.8 (3.7) 3.1 1.8 90.1
-------------------- ------------ ------- ------------ ------- ----------- -------------
Hong Kong 0.5 - - - 0.1 0.6
Eliminations(3) (17.9) (1.9) 1.2 (0.7) (0.9) (19.5)
-------------------- ------------ ------- ------------ ------- ----------- -------------
Total Growth
channels 198.3 20.6 (16.5) 4.1 6.5 208.9
-------------------- ------------ ------- ------------ ------- ----------- -------------
Mature books UK Mature Retail 32.7 0.4 (1.6) (1.2) 1.1 32.6
------------------
Europe Mature fee 8.4 0.3 (0.2) 0.1 1.8 10.3
Third party
strategic partner
life business 39.6 - (1.4) (1.4) 4.8 43.0
Other fee including
CWP 1.3 - (0.4) (0.4) 0.1 1.0
-------------------- ------------ ------- ------------ ------- ----------- -------------
Total Mature Books
fee 82.0 0.7 (3.6) (2.9) 7.8 86.9
-------------------- ------------ ------- ------------ ------- ----------- -------------
Spread/risk 14.9 0.1 (0.6) (0.5) 1.7 16.1
Total Mature Books 96.9 0.8 (4.2) (3.4) 9.5 103.0
-------------------- ------------ ------- ------------ ------- ----------- -------------
Associate and joint
venture life
businesses(4) 2.3 0.4 (0.2) 0.2 1.0 3.5
Other(5) 10.4 - - - 2.8 13.2
Other
eliminations(3) (0.5) - - - (0.1) (0.6)
-------------------- ------------------ ------------ ------- ------------ ------- ----------- -------------
Total 307.4 21.8 (20.9) 0.9 19.7 328.0
-------------------- ------------------ ------------ ------- ------------ ------- ----------- -------------
1. In H1 2016 a number of Ignis funds were merged with other SLI
funds, resulting in a decrease in reported Ignis AUM of GBP5.6bn.
These assets are now included in Institutional (GBP4.0bn) and
Wholesale (GBP1.6bn) with the transfers shown in Market and other
movements.
2. Wrap AUA is reported predominantly within Retail: GBP25.8bn
(FY 2015: GBP23.4bn). International bond AUA is reported within
Europe growth fee business: GBP2.2bn (FY 2015: GBP2.1bn).
3. Certain products are included in both Pensions and Savings
growth AUA and Standard Life Investments growth AUM. Therefore, at
a Group level an elimination adjustment is required to remove any
duplication, in addition to other necessary consolidation
adjustments. Comprises GBP19.5bn (FY 2015: GBP17.9bn) related to
growth channels business eliminations and GBP0.6bn (FY 2015:
GBP0.5bn) related to other consolidation/eliminations.
4. Market and other movements includes GBP0.8bn relating to
stake increase in HDFC Life in April 2016.
5. Other comprises Assets not backing products of GBP10.5bn (FY
2015: GBP7.7bn) and Other corporate assets of GBP2.7bn (FY 2015:
GBP2.7bn).
Assets under administration and net flows
Assets under administration (summary)
6 months ended 30 June 2015
Opening Market Closing
AUA at Gross Net and other AUA at
1 Jan 2015 flows Redemptions flows movements 30 Jun 2015
GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
------------------- ------------------- ------------ ------- ------------ ------- ----------- -------------
Total Growth
channels 180.7 20.5 (13.1) 7.4 2.2 190.3
Total Mature Books
fee 87.9 0.8 (4.4) (3.6) 0.8 85.1
Total Mature Books
spread/risk 16.1 0.1 (0.6) (0.5) (0.2) 15.4
Total Other 11.9 0.3 (0.2) 0.1 (0.7) 11.3
------------------- ------------------- ------------ ------- ------------ ------- ----------- -------------
Total AUA 296.6 21.7 (18.3) 3.4 2.1 302.1
------------------- ------------------- ------------ ------- ------------ ------- ----------- -------------
Growth channels Institutional 61.4 5.4 (3.6) 1.8 1.4 64.6
------------------
Wholesale 35.5 8.9 (3.6) 5.3 (0.2) 40.6
Wealth 6.1 0.4 (0.4) - 0.2 6.3
Ignis 14.5 1.3 (3.2) (1.9) 0.3 12.9
Standard Life
Investments 117.5 16.0 (10.8) 5.2 1.7 124.4
-------------------- ------------ ------- ------------ ------- ----------- -------------
Workplace 32.0 2.1 (1.0) 1.1 0.1 33.2
Retail(1) 37.3 3.6 (1.8) 1.8 1.3 40.4
UK Pensions and
Savings 69.3 5.7 (2.8) 2.9 1.4 73.6
-------------------- ------------ ------- ------------ ------- ----------- -------------
Europe Growth(1) 8.7 0.7 (0.4) 0.3 - 9.0
Pensions and
Savings 78.0 6.4 (3.2) 3.2 1.4 82.6
-------------------- ------------ ------- ------------ ------- ----------- -------------
Hong Kong 0.4 - - - - 0.4
Eliminations(2) (15.2) (1.9) 0.9 (1.0) (0.9) (17.1)
-------------------- ------------ ------- ------------ ------- ----------- -------------
Total Growth
channels 180.7 20.5 (13.1) 7.4 2.2 190.3
-------------------- ------------ ------- ------------ ------- ----------- -------------
Mature books UK Mature Retail 33.5 0.4 (1.6) (1.2) 1.1 33.4
------------------
Europe Mature fee 8.5 0.4 (0.2) 0.2 (0.8) 7.9
Third party
strategic partner
life business 43.8 - (2.2) (2.2) 0.5 42.1
Other fee including
CWP 2.1 - (0.4) (0.4) - 1.7
-------------------- ------------ ------- ------------ ------- ----------- -------------
Total Mature Books
fee 87.9 0.8 (4.4) (3.6) 0.8 85.1
-------------------- ------------ ------- ------------ ------- ----------- -------------
Spread/risk 16.1 0.1 (0.6) (0.5) (0.2) 15.4
Total Mature Books 104.0 0.9 (5.0) (4.1) 0.6 100.5
-------------------- ------------ ------- ------------ ------- ----------- -------------
Associate and joint
venture life
businesses 2.1 0.3 (0.2) 0.1 - 2.2
Other(3) 10.2 - - - (0.7) 9.5
Other
eliminations(2) (0.4) - - - - (0.4)
-------------------- ------------------ ------------ ------- ------------ ------- ----------- -------------
Total 296.6 21.7 (18.3) 3.4 2.1 302.1
-------------------- ------------------ ------------ ------- ------------ ------- ----------- -------------
1. Wrap AUA is reported predominantly within Retail: GBP21.4bn.
International bond AUA is reported within Europe growth fee
business: GBP1.9bn.
2. Certain products are included in both Pensions and Savings
growth AUA and Standard Life Investments growth AUM. Therefore, at
a Group level an elimination adjustment is required to remove any
duplication, in addition to other necessary consolidation
adjustments. Comprises (GBP17.1bn) related to growth channels
business eliminations and (GBP0.4bn) related to other
consolidation/eliminations.
3. Other comprises Assets not backing products of GBP6.8bn and
Other corporate assets of GBP2.7bn.
Supplementary information continued
Standard Life Investments assets under management and net
flows
6 months ended 30 June Opening Closing
2016 AUM Market AUM
at and at
1 Jan Gross Net other 30 Jun
2016 flows Redemptions flows movements 2016
--------------------------------------
GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
------------ ------------------------ -------- ------- ------------ ------- ----------- --------
Growth AUM UK 83.2 8.6 (7.5) 1.1 7.0 91.3
------------
Europe 14.2 2.5 (3.1) (0.6) 2.7 16.3
North America 11.7 3.0 (2.5) 0.5 0.3 12.5
Asia Pacific 3.3 0.5 (0.5) - 0.4 3.7
India 7.0 0.8 - 0.8 0.5 8.3
Ignis(1) 11.1 0.3 (0.4) (0.1) (5.4) 5.6
------------------------------------- -------- ------- ------------ ------- ----------- --------
By geography of client 130.5 15.7 (14.0) 1.7 5.5 137.7
------------------------------------- -------- ------- ------------ ------- ----------- --------
Equities 16.9 1.6 (2.2) (0.6) (0.6) 15.7
Fixed income 21.8 2.8 (2.5) 0.3 3.1 25.2
Multi-asset(2) 50.3 6.5 (5.9) 0.6 1.1 52.0
Real estate 8.6 0.6 (0.7) (0.1) 2.3 10.8
MyFolio 8.1 1.2 (0.5) 0.7 0.1 8.9
Other(3) 13.7 2.7 (1.8) 0.9 4.9 19.5
Ignis(1) 11.1 0.3 (0.4) (0.1) (5.4) 5.6
------------------------------------- -------- ------- ------------ ------- ----------- --------
By asset class 130.5 15.7 (14.0) 1.7 5.5 137.7
------------------------------------- -------- ------- ------------ ------- ----------- --------
Institutional 67.0 8.4 (6.4) 2.0 9.1 78.1
Wholesale 45.9 6.5 (6.9) (0.4) 1.8 47.3
Wealth 6.5 0.5 (0.3) 0.2 - 6.7
Ignis(1) 11.1 0.3 (0.4) (0.1) (5.4) 5.6
------------------------------------- -------- ------- ------------ ------- ----------- --------
By channel 130.5 15.7 (14.0) 1.7 5.5 137.7
------------------------------------- -------- ------- ------------ ------- ----------- --------
Standard Life Group 83.1 1.9 (2.7) (0.8) 6.0 88.3
Phoenix Group 39.6 - (1.4) (1.4) 4.8 43.0
-------------------------------------- -------- ------- ------------ ------- ----------- --------
Strategic partner life
business AUM 122.7 1.9 (4.1) (2.2) 10.8 131.3
-------------------------------------- -------- ------- ------------ ------- ----------- --------
Standard Life Investments
AUM 253.2 17.6 (18.1) (0.5) 16.3 269.0
-------------------------------------- -------- ------- ------------ ------- ----------- --------
6 months ended 30 June Opening Closing
2015 AUM Market AUM
at and at
1 Jan Gross Net other 30 Jun
2015 flows Redemptions flows movements 2015
--------------------------------------
GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
------------ ------------------------ -------- ------- ------------ ------- ----------- --------
Growth AUM UK 75.5 7.7 (5.6) 2.1 2.5 80.1
------------
Europe 11.3 3.1 (0.9) 2.2 (1.0) 12.5
North America 8.1 2.3 (0.8) 1.5 0.1 9.7
Asia Pacific 2.0 1.1 (0.3) 0.8 0.1 2.9
India 6.1 0.5 - 0.5 (0.3) 6.3
Ignis 14.5 1.3 (3.2) (1.9) 0.3 12.9
------------------------------------- -------- ------- ------------ ------- ----------- --------
By geography of client 117.5 16.0 (10.8) 5.2 1.7 124.4
------------------------------------- -------- ------- ------------ ------- ----------- --------
Equities 15.5 1.3 (1.4) (0.1) 0.9 16.3
Fixed income 22.0 1.9 (1.5) 0.4 (1.2) 21.2
Multi-asset(2) 38.6 8.9 (3.3) 5.6 1.7 45.9
Real estate 7.4 0.5 (0.3) 0.2 0.4 8.0
MyFolio 5.9 1.3 (0.4) 0.9 0.1 6.9
Other(3) 13.6 0.8 (0.7) 0.1 (0.5) 13.2
Ignis 14.5 1.3 (3.2) (1.9) 0.3 12.9
------------------------------------- -------- ------- ------------ ------- ----------- --------
By asset class 117.5 16.0 (10.8) 5.2 1.7 124.4
------------------------------------- -------- ------- ------------ ------- ----------- --------
Institutional 61.4 5.4 (3.6) 1.8 1.4 64.6
Wholesale 35.5 8.9 (3.6) 5.3 (0.2) 40.6
Wealth 6.1 0.4 (0.4) - 0.2 6.3
Ignis 14.5 1.3 (3.2) (1.9) 0.3 12.9
------------------------------------- -------- ------- ------------ ------- ----------- --------
By channel 117.5 16.0 (10.8) 5.2 1.7 124.4
------------------------------------- -------- ------- ------------ ------- ----------- --------
Standard Life Group 84.6 2.3 (3.5) (1.2) 0.1 83.5
Phoenix Group 43.8 - (2.2) (2.2) 0.5 42.1
-------------------------------------- -------- ------- ------------ ------- ----------- --------
Strategic partner life
business AUM 128.4 2.3 (5.7) (3.4) 0.6 125.6
-------------------------------------- -------- ------- ------------ ------- ----------- --------
Standard Life Investments
AUM 245.9 18.3 (16.5) 1.8 2.3 250.0
-------------------------------------- -------- ------- ------------ ------- ----------- --------
1. Ignis fund mergers in H1 2016 transferred GBP5.6bn of AUM,
shown in Market and other movements, into the following categories
- by geography: UK (GBP5.6bn); by asset class: real estate
(GBP1.6bn) and other (GBP4.0bn); by channel: Institutional
(GBP4.0bn) and Wholesale (GBP1.6bn).
2. Comprises absolute return strategies, enhanced
diversification strategies, risk-based portfolios and traditional
balanced portfolios.
3. Comprises cash, private equity, liquidity funds and Wealth.
Net inflows from India cash funds GBP0.5bn (H1 2015: net inflow
GBP0.2bn), net inflows from liquidity funds of GBPnil (H1 2015: net
inflows GBP0.7bn).
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR DMGGRGRRGVZZ
(END) Dow Jones Newswires
August 09, 2016 02:01 ET (06:01 GMT)
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