Worries over outflow from Standard Life’s flagship multi-asset strategy

Worries about outflows from Standard Life’s flagship multi-asset strategy hit its shares, ahead of an £11bn (€12.2bn) merger with Aberdeen Asset Management to form the UK’s largest active manager.

The merger will create a combined group, Standard Life Aberdeen, with assets of around £670bn and which aims to save at least £200m in annual costs.

The companies are looking to shore up their defences in the face of competition from lower-cost index funds and the increased cost of tougher regulations — pressures that are expected to prompt more industry consolidation.