Group assets under administration (AUA) represent the IFRS gross assets of the Group adjusted to include third party AUA, which are not included in the balance sheet. In addition, certain assets are excluded from the definition, for example deferred acquisition costs, intangibles and reinsurance assets.
Analysis of Group AUA
For the year ended 31 December 2008
| |
Opening
at 1
January 2008
£bn |
Gross
inflows
£bn |
Redemptions
£bn |
Net flows
£bn |
Market/
other
movements
£bn |
Closing
at 31
December
2008
£bn |
| UK1 |
106.7 |
12.8 |
(11.3) |
1.5 |
(12.4) |
95.8 |
| Europe |
6.1 |
1.2 |
(0.6) |
0.6 |
0.6 |
7.3 |
| Canada |
17.9 |
2.4 |
(2.1) |
0.3 |
(0.2) |
18.0 |
| Asia Pacific |
0.4 |
- |
- |
- |
0.1 |
0.5 |
| Total worldwide life and pensions |
131.1 |
16.4 |
(14.0) |
2.4 |
(11.9) |
121.6 |
| Banking |
13.1 |
1.1 |
(2.7) |
(1.6) |
(0.2) |
11.3 |
| Other businesses |
1.4 |
- |
- |
- |
0.3 |
1.7 |
| Standard Life Investments third party assets under management (AUM) |
47.7 |
8.9 |
(5.5) |
3.4 |
(5.6) |
45.5 |
| Group adjustments1,2 |
(24.3) |
(4.1) |
2.3 |
(1.8) |
2.8 |
(23.3) |
| Group assets under administration |
169.0 |
22.3 |
(19.9) |
2.4 |
(14.6) |
156.8 |
| |
|
|
|
|
|
|
Group assets under administration
managed by: |
|
|
|
|
|
|
| Standard Life Group entities |
158.2 |
|
|
|
|
138.5 |
| Other third party managers |
10.8 |
|
|
|
|
18.3 |
| Total |
169.0 |
|
|
|
|
156.8 |
1 The opening balance has been restated to reflect the inclusion of Sigma mutual funds.
2 In order to be consistent with the presentation of new business information certain products are included in both life and pensions AUA and investment operations. Therefore, at a Group level an elimination adjustment is required to remove any duplication, in addition to other necessary consolidation adjustments.
During the year, positive net flows of £2.4bn were offset by negative market/other movements of £14.6bn due to falling equity, property and fixed interest security values. As a result Group AUA fell by 7% to £156.8bn. Positive net flows were achieved in each of the life and pensions territories. However, worldwide life and pensions AUA fell by £9.5bn due to the adverse market movements experienced in 2008. Third party AUM remained resilient in the face of extremely volatile equity markets with a fall of just 5%. AUA in our banking business fell by £1.8bn reflecting measures taken to manage our mortgage exposure during difficult market conditions. The UK immediate annuity reinsurance transaction resulted in £6.7bn of assets being reinsured to Canada Life. This transaction reduced AUA managed by Group entities and correspondingly increased AUA managed by other third party managers.
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