Aberdeen Standard Investments, the money management unit of Standard Life Aberdeen, saw assets under management rise 4% in the six months ended June 30 to £525.7 billion ($639.5 billion), driven by positive market movements and outflows reduction.
A financial update Wednesday said assets under management and administration for parent Standard Life Aberdeen also increased 4.7% for six months to £577.5 billion.
Net outflows totaled £15.9 billion, mostly from driven by outflows from equity and multiasset strategies.
The firm's equity AUM was flat for the period at £72.7 billion, with positive market movements of £9.1 billion and gross inflows of £4.3 billion. Multiasset strategy assets fell 1.8% to £52.9 billion due to £10 billion in outflows.
The firm reduced overall institutional net outflows to £6.9 billion in six months from £10.6 billion in the corresponding half of the previous year.
"We have made good progress in reshaping our business so that it is set up to take advantage of the trends impacting our industry both globally and in the U.K.," CEO Keith Skeoch said in a news release. "We are encouraged by an improvement in our investment performance and a growing number of strategies with positive ratings from investment consultants. We are seeing inflows that are more diverse and are pleased to have retained £35 billion of Lloyds Banking Group assets."
Mr. Skeoch was referring to the aftermath of the 2017 merger between Standard Life and Aberdeen Asset Management, when Lloyds Banking Group and Scottish Widows in February 2018 announced they would be withdrawing investments from the merged firm due to concerns on competition. An arbitrator ruled earlier this year that the firm was not a material competitor of Scottish Widows and Lloyds' wealth business.
Following a final settlement with Lloyds Banking Group and Scottish Widows announced July 24, Aberdeen Standard will lose two-thirds of the total £100 billion contract in the next nine months; that money will be going to BlackRock Inc. and Schroders PLC.
Of remaining assets from Lloyds, £30 billion will be in passive strategies and £5 billion in real estate assets, the firm said in the update. SLA Group will also receive a payment of £140 million in final settlement to compensate for loss of profit as part of the settlement.
A Lloyds spokeswoman said Wednesday that Schroders will manage around £80 billion in active strategies for Lloyds. BlackRock will manage £30 billion in passive strategies; that money will be moved in April 2022, the spokeswoman said.
