09 August 2017
Edinburgh
Reporter: Drew Nicol

Standard Life and Aberdeen to finalise merger


Investment management company Standard Life and Aberdeen Asset Management are set to finalise their merger on 14 August against the backdrop of a strong H1 earnings report.

Standard Life, which reported assets under administration of £361.9 billion, outlined its ambition to field a combined leadership team that ensures full business readiness for day one in its H1 revenue report. The new entity will be renamed Standard Life Aberdeen.

The report boasted strong performance in the first half of 2017 with fee-based revenue up 5 percent and operating profit up 6 percent.

According to Standard Life, combining forces with Aberdeen Asset Management, which has £308.1 billion in assets under management, is part of its long-term strategy of becoming a “diversified world-class investment company”.

Standard Life CEO Keith Skeoch said: “Standard Life has delivered a strong performance in the first half of 2017 with fee based revenue up 5 percent and operating profit up 6 percent.”

“We continue to see the benefits of targeted investments to further our diversification agenda, the success of our newer investment solutions and the ongoing focus on operational efficiency.”

“This has allowed us to grow assets, profits, cash flows and returns to shareholders.”

Skeoch added: “We are well placed to continue to meet changing client and customer needs globally, and to generate growing and sustainable returns for our shareholders.”

It’s unclear what will happen to Aberdeen Asset Management’s securities lending operation, led by Matthew Chessum, once the merger is finalised.

Their merger prospectus, however, did warn shareholders to be prepared for the Securities Financing Transactions Regulation, with the combined entity’s UCITS and alternative investment funds required to provide significant reporting on loans, repos and total return swaps, to trade repositories and in pre-contractual documents and periodic reports to investors.

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