The past year has been the most challenging market for mutual funds for over 20 years, Standard Life said today as it released its full-year results for 2016.
The Scottish life insurer’s asset management arm, Standard Life Investments (SLI), saw a net outflow of £700 million (€827 million), which compares to a net inflow of £10.3 billion in 2015.
There were net institutional inflows of £1.1 billion, but the wholesale business saw net outflows of £1.7 billion.
There was also lower demand for SLI’s flagship Gars absolute return fund, though this was offset by a 30% increase for gross inflows into other products.
Twenty-percent of third-party funds beat benchmarks over the year, compared to over 70% and 80% for three and five years, respectively.
However, a market movement of some £30 billion saw assets under management increase £277.9 billion.
Keith Skeoch (pictured), chief executive, said Standard Life was benefiting from its strengthening global brand and a well diversified client based with strong relationships.
Referring to the acquisition of fund platform Elevate from Axa last year, he added: “The acquisition of Elevate has strengthened our leading position in the advised platform market while 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.”
He added: “We are already seeing the benefits of targeted investments to further our diversification agenda, including the success of our newer investment solutions, and the sharpened focus on operational efficiency.”
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