Standard Life Aberdeen recorded the lowest redemptions in the first half of the year since its merger three years ago, as assets grew 6% over the period to £511.8 billion ($630.8 billion).
A financial update Friday said assets under management and administration fell 11.7% year-on-year.
The money manager, which was created when Standard Life and Aberdeen Asset Management merged in 2017, recorded total redemptions of £38.1 billion in the first half of the year. Total net inflows were £100 million for the period, compared with £1.5 billion in net outflows for the previous six months and £15.9 billion in net outflows for the six months ended June 30, 2019.
Negative market and other movements subtracted £8 billion from assets over the first half, compared with a £5.9 billion gain for the six months ended Dec. 31, and a £43.1 billion gain for the six months ended June 30, 2019.
Institutional assets under management and administration grew 1.2% over the six months but fell 4.4% over the year, to £162.5 billion. Institutional net inflows were £1.4 billion, compared with £7.3 billion in net outflows for the previous six months and £6.9 billion in net outflows for the six months ended June 30, 2019.
Markets and other movements added £500 million to institutional assets for the six months ended June 30, vs. a £2 billion negative impact for the six months ended Dec. 31, and a £10.1 billion gain for the six months ended June 30, 2019.
Fee-based revenue was down 13.4% year-on-year to £706 million. On an IFRS measure Standard Life Aberdeen made a £498 million loss, compared with IFRS profit before tax of £629 million for the six months ended June 30, 2019.
"There is no question that the impact of COVID-19 has played a role on our results today, and across our industry, particularly in relation to lower revenue," CEO Keith Skeoch said in a news release.
The firm announced in June that Mr. Skeoch will step down by Sept. 30.
"This is my last set of results as chief executive of Standard Life Aberdeen, following 21 years with the business — a period where I have seen the business evolve from a mutual life and pensions company to a capital-light global investment house," Mr. Skeoch said. "I am pleased to hand over a business with strong foundations, an enviable capital position, talented people, enduring relationships and big ambitions."
Stephen Bird joined July 1 as chief executive-designate.
