US active fund manager Franklin Templeton has become the largest shareholder in UK insurer Standard Life, while Fidelity has reduced its holding.

Edinburgh-based Standard Life demutualised and became a member of the FTSE 100 in July. Investor demand for the flotation enabled the insurer to raise about £1.1bn of capital after fees, expenses and shares sold by members. The institutional group led by Franklin Templeton has more than quadrupled its shareholding since August. The group holds 3.4% of the total issued share capital. But Fidelity has reduced its ownership. It held 2% of the shares in August but by last month this fell to 0.3%. The next largest shareholders include Barclays and Legal & General Investment Management. Others include Baillie Gifford and institutional groups led by Hermes and State Street Global Advisors. Analysts at Fox-Pitt, Kelton downgraded Standard Life to underperform at the beginning of the month. Its price target was 260p, based on poor underlying economics, poor persistency on its pensions business, limited back-book value and limited cashflow.