Earnings up but inflows down for Standard Life

Mixed-chartStandard Life Investments, the asset management division of the Scottish insurer Standard Life, recorded a 9% rise in pre-tax profits between the first half of the year and the corresponding period of 2013.

However, the firm's net inflow from third-party clients in the six-month period, £4.2 billion (€5.3 billion), was more than £3 billion less than it received in the first half of 2013.

As a result of inflows and market movements, the firm's assets under management rose 3% during the first six months to £195 billion. Of this, a little over half is third-party assets and the rest is from the insurance company.

The half-year statement from Standard Life includes the acquired private client division of Newton Management in the results for Standard Life Investments for the first time and the firm says this is behind a fall in operating return on equity.

On July 1, Standard Life Investments completed the acquisition of Ignis Asset Management for £390 million.

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