Standard Life Aberdeen’s assets under management take a hit

Assets fall as investors withdraw and move to funds with lower fees amid crisis, but it maintains attractive dividend

Article updated: 7 August 2020 1:00pm Author: Helal Miah

  • Assets under management fell to £511.8bn from £544.6bn in that same period last year
  • However the numbers are more or less in-line with expectations while they were confident in maintaining the interim dividend of 7.3p leaving the share to trade marginally higher at the open
  • Recommendation: We maintain our Hold recommendation for investors seeking income and willing to accept a medium level of risk

The decision by Lloyds to switch its investment mandate from Standard Life to Schroders has resulted in the former losing its mantle as the UK’s largest asset manager to the latter but market movements during this crisis also have had a material impact on half year results. Assets under management fell to £511.8bn from £544.6bn, as well as the Lloyds impact, this was also due to lower market valuations during a volatile period and investors reallocating to less volatile funds with lower management fees, resulting in a reduced fee income of £706m, 13% lower than the same period last year.

These are numbers investors would overall be relatively happy with given the market circumstances and with some markets regaining most of the losses there is expectation that the second half will be better, provided further lockdowns are limited around the globe. There have been some cost synergies from the high profile merger and more should be expected down the line. In an income starved world, its 8% dividend yield is no doubt attractive, however we are still concerned the risk of further major client losses and flagship funds still seeing investor withdrawals.


All information given including prices, yields and our opinion is correct at the time of publication. Our opinions on investments can change at any time and for our latest view please go to www.share.com. To understand how our Investment research team arrive at their views please read our Investment Research Policy.

Helal Miah portrait photo
Helal Miah

Investment Research Analyst

After graduating with an economics degree from University College London, Helal started his career within private banking at Smith & Williamson Investment Management and later held analyst and fund manager roles with the Industrial Bank of Japan, Schroders and Mitsubishi Corporation. He is a chartered fellow of the Chartered Institute for Securities & Investment.