The group highlighted the challenging environment for the mutual funds industry.

Standard Life's assets under management swelled 16 per cent in 2016 to £357.1 billion ($446.9 billion), while the group's wealth gross inflows dipped by £100 million.

Institutional and wholesale AuM hit £137.1 billion last year, an 11 per cent year-on-year rise, as the group benefited from product and client diversification, it said in a statement. Standard Life saw institutional net inflows of £1.1 billion and wholesale net outflows of £1.7 billion in “the most challenging market for the UK mutual fund industry for more than 20 years,” the group said. 

The group reported “modest” net outflows of £2.6 billion for last year, which represented less than 1 per cent of opening assets, driven largely by its mature books of business, Standard Life said.

Gross inflows of £42.1 billion were “resilient”, the group said, compared with the £43 billion recorded in 2015. 

Standard Life's fee-based revenues last year rose 5 per cent year-on-year to £1.651 billion, which totalled 95 per cent of its total income. 

The group's pre-tax operating profit jumped 9 per cent year-on-year to £723 million, up from £665 million in 2015. 

“Despite industry headwinds, we are benefiting from our strengthening global brand and strong long-term relationships with a well diversified range of clients and customers,” said Keith Skeoch, chief executive.

He continued: “The acquisition of Elevate has strengthened our leading position in the advised platform market while the increase in the stake in HDFC Life and the proposed combination with Max Life will increase our exposure to the attractive and fast-growing Indian market.”