Standard Life Investment, which now includes Standard Life Wealth, has reported a first half pre-tax operating profit of £104 million, a nine percent increase year on year.
Total assets under management (AUM) at the division reached £195.1 billion, up one percent. Third party AUM increased five percent to £108 billion. Third party net inflows of £4.2 billion represented an annualised eight percent of opening third party AUM.
In its results statement the firm said it increased its institutional client base in UK and Europe by eight percent to 946 clients.
The division also said it had expanded its geographic reach and diversified its distribution channels with £2.4 billion or 57 percent of net inflows originating from outside the UK and 62 percent of net inflows from the wholesale channel.
During the period it also completed the acquisition of Ignis Asset Management on 1 July 2014 for a purchase consideration of £390 million, subject to finalisation of the completion process (see thewealthnet 26/03/2014). Following the acquisition, the firm is targeting an EBITDA margin of 45 percent by 2017.
Standard Life also added that its wrap platform business continued to attract advisers and assets with assets under administration (AUA) up 12 percent to almost £19 billion and “is fully compliant with regulatory changes, including removal of fund rebates, ahead of the 2016 deadline.” Around 25 percent of wrap platform AUA and all "Good to Go" default funds are managed by Standard Life Investments.