Standard Life's fund management arm has reported a full-year profit of £257 million ($395 million) for 2014.

Edinburgh-based Standard Life Investments generated a pre-tax profit of £257 million ($395 million) last year, up 30 per cent from £197 million in 2013.

As the company focused on moving into the fund management realm, most notably with the acquisition of Ignis Asset Management, Standard Life Investment's EBITDA climbed 32 per cent over 2014 to £266 million. 

The steady year at the insurer's money manager arm also reflected its shift toward higher margin products such as UK mutual funds. Such changes helped the business maintain a stable EBITDA margin of 39 per cent and withstand the negative impact of a stronger sterling against other currencies.  

Meanwhile, the division's assets under management soared to £245.9 billion, up 45 per cent from £170.1 billion the previous year while its institutional clientèle in the UK and Europe grew a notable 12 per cent.

The group as a whole reported a pre-tax profit of £604 million over the course of the year, up 19 per cent from 2013. Improved investment performance helped offset the annuity business' profit decline brought on by UK pension reforms.

“Standard Life Investments remains focused on delivering excellent investment performance, expanding its investment capabilities, strengthening its distribution and increasing geographic reach. The integration of Ignis is progressing well and we remain on track to achieve £50 million of planned annual cost savings and our EBITDA margin target of 45 per cent by 2017,” the company said in its results statement.