Fixer-upper

9 March 2021 By Neil Unmack, Aimee Donnellan Follow @unmack1

UK asset managers Standard Life Aberdeen and M&G are shaking off the pandemic, helped by better stock picking. The challenge is to keep assets and profit growing in an industry shaken by passive funds, and find new businesses. Their low valuations at least provide a cushion.

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Standard life Aberdeen on March 9 reported full year revenue of 1.4 billion pounds in 2020, down from 1.6 billion pounds in 2019. Adjusted operating profit was 219 million pounds, compared with 301 million pounds a year earlier.

New Chief Executive Stephen Bird announced a final dividend of 7.3 pence per share, bringing the full year payout down to 14.6 pence, compared with 21.6 pence in 2019. Bird pledged to achieve “high single digit” annual revenue growth over the three years to 2020, and bring expenses down to 70% of costs, down from 85% in 2020.

Bird is targeting growth through three “vectors”: investments; personal; which includes direct to consumer operations such as wealth management; and advisors, which provides investment platforms for financial advisors.

M&G’s operating profit and assets under management came in above expectations in the year ending December 2020. The asset manager, which spun out of Prudential in 2019, reported operating profit of 788 million pounds in the company's first full year as a standalone company and beat a forecast of 722 million pounds, according to a company-supplied consensus poll.

Assets under management and administration totalled 367 billion pounds at the end of December, above a forecast 353 billion pounds.

M&G shares were up 4.97% at 215.8 pence by 0811 GMT on March 9.

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Assets under management and administration totalled 367 billion pounds at the end of December, above a forecast 353 billion pounds.

M&G shares were up 4.97% at 215.8 pence by 0811 GMT on March 9.

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