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Money Management

Aberdeen Standard Investments records 10% drop in AUM for year

Aberdeen Standard Investments, the money management unit of Standard Life Aberdeen, saw assets under management and administration fall 10.1% for 12 months ended Dec. 31 to 505.1 billion ($641 billion) on negative market movements.

A financial update Wednesday said institutional net outflows totaled 27.7 billion for 2018, compared with net outflows of 19.7 billion for the previous year.

The update said outflows were a "challenge," adding that "it is encouraging that these are concentrated in a narrow range of strategies."

Equities net outflows were 17.6 billion for 12 months ended Dec. 31 vs. 10.2 billion in net outflows for the previous year. Multiasset net outflows totaled 15.7 billion for the year vs. 6.9 billion in 12 months ended Dec. 31, 2017.

Assets under management and administration for parent Standard Life Aberdeen fell 9.3% for 12 months ended Dec. 31 to 551.5 billion ($724.7 billion). Net outflows totaled 40.9 billion as of Dec.31, a decline from on net outflows of 32.9 billion for 12 months ended Dec. 31, 2017. Adjusted profit before tax fell 17% for 12 months to 860 million.

"In a tough year of continued change for our industry, we saw further net outflows — equivalent to about 7% of our starting assets," said Martin Gilbert, vice chairman of Standard Life Aberdeen and chairman of Aberdeen Standard Investments, in a news release accompanying the update.