Multi-assetAug 9 2016

Gars suffers ‘first quarterly outflow’ as SLI flows slip

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Gars suffers ‘first quarterly outflow’ as SLI flows slip
ByTaha Lokhandwala and Dan Jones

Standard Life Investments (SLI) suffered £400m of net retail outflows in the first six months of 2016, while analysts at RBC have also suggested the firm’s flagship Gars fund saw its first quarterly outflow on record.

The insurance company’s investment arm saw £6.5bn of net business in its wholesale arm but this was wiped out by gross redemptions. The £400m in outflows follows a £5.3bn net inflow for the first half of last year.

The Gars strategy, which encompasses institutional and retail money, saw £400m in net redemptions in the second quarter, the first time flows have been negative, according to analysts at RBC.

RBC, which said it did not expect an immediate recovery in flows for the multi-asset fund, added the strategy accounts for around 30 per cent of earnings at the group.

SLI’s wealth business, by contrast to its investment arm, saw £200m of net inflows over the six months. SLI’s retail assets under management (AUM) as a whole rose from £45.9bn to £47.3bn due to positive market movements.

Overall, the firm’s AUM rose from £130.5bn to £137.7bn over the six months, helped by strong performance in its institutional arm.