Standard Life Share Discussion Threads

[andysand] 20/2/2016 09:13

There is at technical reason to buy here too. Should bounce nicely off multi year support levels.

[bohemian13] 19/2/2016 16:28

Thanks Papy will take a look.

[oakville] 19/2/2016 15:58

Standard Life - dividend rises by 7.8%
Charlie Huggins | 19 February 2016 | A A A

No recommendation
No news or research item is a personal recommendation to deal. All investments can fall as well as rise in value so you could get back less than you invest.

Standard Life plc Ordinary 12.22222p
Sell: 334.50 | Buy: 334.80 | -3.80 (-1.12%)
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Standard Life enjoyed another good year in 2015, with assets under administration (AUA) increasing by 4% to £307.4bn, including net inflows of £6.3bn and positive market movements of £4.5bn. Group underlying performance increased by 12% to £630m, allowing the group to continue its progressive dividend policy, increasing the full year payment by 7.8% to 18.36p per share. The shares rose by 2% in early morning trading.

Highlights:

Fee based revenue up 10% to £1,579m, representing 94% of underlying income
Group underlying cash generation up 7% to £447m
The Group remains well capitalised with a stable Group Solvency II capital surplus of £2.1bn, representing a Group solvency cover of 162%

Divisional performance:

Standard Life Investments continued to deliver good investment performance and saw total assets under management (AUM) increase by 3% to £253.2bn, with strong growth in international wholesale and institutional channels. Third party investment performance was ahead of benchmark for 88% of Standard Life funds over 1 year, 95% over 3 years and 90% over 5 years. Underlying operating profit rose by 33%, benefiting from a continuing shift in mix towards higher margin products.

UK Pensions and Savings AUA rose by 3% to £131.6bn, benefitting from a 9% increase in regular contributions into Workplace pensions, growth in Wrap platform assets (+22%), and strong demand for income drawdown (AUA up 18%). However, underlying operating profit fell by 4.6%, partly due to a 68% reduction in annuity sales as a result of the 2014 Budget changes.

Europe operating profit reduced to £23m (2014: £40m). India and China associate and joint venture life businesses operating profit rose to £27m (2014: £23m).

Keith Skeoch, Chief Executive, commented:

"While the difficult conditions in global financial markets may persist for some time, Standard Life remains well positioned... We have a well-diversified and resilient business that continues to deliver for customers and clients as well as shareholders"

Our view:

Standard Life has transformed itself over the last fifteen years or so from a traditional life insurer to a fee-based asset manager. The group now has two main business lines - Standard Life Investments (SLI), which offers a range of active and passively managed funds; and a UK savings and pensions business. The latter includes the wrap platform for financial advisers and the group's corporate pensions proposition, both of which provide a strong distribution platform to channel inflows into SLI.

Standard Life is benefitting from some favourable trends, such as the on-going shift from defined benefit to defined contribution pension schemes, and auto-enrolment (by 2018 all UK employers will need to provide a qualifying workplace pension for eligible employees). The group added over 250,000 new auto enrolment customers during 2015, taking total joiners to over 820,000.

Standard Life's annuity sales were sharply lower in 2015, as a result of recent pension reforms. However, these changes could benefit the group in the long run, by increasing demand for alternative pension arrangements such as income drawdown. This should allow the company to retain more assets on its platform when people come to retirement.

The shares have been weak over the last 6 months which probably reflects declining stock markets and increased volatility; neither of which are helpful for this business. It may also reflect some concern over proposed changes to pension tax relief for higher earners, ahead of the 16 March 2016 Budget. Changing regulation is a risk for Standard Life; but the need for individuals to save more towards their own retirement isn't going to go away.

The shares now offer a yield of 5.8% for FY16, rising to 6.4% by FY18, on current analyst estimates. We view this yield as attractive, especially given Standard Life have increased their dividend every year since its stock market flotation in 2006.

[essentialinvestor] 19/2/2016 15:57

Dav, could still be a late cycle correction, however an early bear
market is a strong possibility.

If this is a bear market would expect we would head sharply lower by the end of March
time, so should become clearer shortly.

[oakville] 19/2/2016 15:53

Sod it. Bought 1000 tucking them away.

[oakville] 19/2/2016 15:40

Why am I not buying these. For some strange reason the lack of a response to today's great figures worries me?

[davr0s] 19/2/2016 15:09

We are in a bear market so bad results getting hammered and ok ones just suffer a mild sell off - it's just the general market and SL is cyclical

[papy02] 19/2/2016 15:02

AURR (subject to EGM) should - but it's a "liquidation distribution" not a dividend (so I assume treated as capital repayment not income, so may not suit?)



Interim liquidation distribution: On or around 16th March 2016

The Joint Liquidators have indicated that they currently intend to make an initial distribution to Shareholders of £4,502,834.40, equivalent to 11.87p

[rathlindri] 19/2/2016 14:47

Very strange market...

[bohemian13] 19/2/2016 14:24

Quick question. Do you know if any of the company's in the header are returning capital with a special dividend etc before the end of the tax year. Thanks.

[chinese investor] 19/2/2016 13:43

Here We Go....
....To The Pub !

[essentialinvestor] 19/2/2016 12:53

F1, sector sentiment is dire atm and the wider UKX level is a big factor
in the SL valuation, sentiment will ultimately change.

[chinese investor] 19/2/2016 12:44

"Final dividend of 12.34p making a total of 18.36p, up 7.8% for the year"

[andysand] 19/2/2016 12:43

It's the trading bots. It will go up either today or Monday. The results just need to sink in with institutions who don't act very fast.

[f1araway] 19/2/2016 12:29

Considering these results the price behaviour is a disgrace!

[mazarin] 19/2/2016 11:18

Other than acknowledging that SL (like everyone else) is experiencing the effects of operating in difficult global financial market conditions, I see nothing to give any concern in these generally very good results. It's yet another example of the 'contrariness' of current markets, that ups RR's Share Price when they announce halving the dividend and knocks SL. when it proposes to increase the dividend and reports in ahead of market expectations. Where's the sense in that?

[skyship] 19/2/2016 10:55

RE Dunedin (DNE)

The basic stats are that the Sept'15 NAV was 512p. Add in the £2.9m upside from the CitySprint sale; and the NAV may be c523p, so the discount = 33%.

As an example of possible returns:

# a 480p redemption by 30th Mar'19 achieves a 10.7% Gross Redemption Yield.
# a 490p redemption by 30th Mar'19 achieves a 11.4% Gross Redemption Yield.
# a 500p redemption by 30th Mar'19 achieves a 12.2% Gross Redemption Yield.

Personally I lost internet connection (a 4week ongoing problem here in La France Profonde!) just 5minutes before yesterday's RNS, so ended up having to pay 345p today rather than perhaps 310p yesterday!!!

[dr biotech] 19/2/2016 10:31

Well fwiw I have added some more here today. First time since flotation. Will now watch them plunge. As I am getting older I am looking more for shares that give an income rather than capital growth. I am hoping to build a portfolio that gives me 20k pa tax free by the time I am 55. I could probably get 75% of the way their now but as with many feel a bit nervous where the markets are heading.

[nithbank] 19/2/2016 10:15

At least those who reinvest dividends into shares should get a bumper haul at these prices.

[badtime] 19/2/2016 10:14

U should buy some LXB Sky

[essentialinvestor] 19/2/2016 09:53

Very tepid share price reaction with the initial bounce being sold off a bit,
may need to have a second read through of results.

[skyship] 19/2/2016 09:37

Dunedin (DNE)looks to be the latest Private Equity Trust to opt for liquidation - another HPEQ,LMS,MTH,NRI opportunity.

Very limited marketability; but even after the 50p rise from its lowly 300p base (40% discount), this looks well worth tucking a few away at 350p if you can get them:
====================================================

Dunedin Enterprise Inv Trust PLC

18 February 2016

Dunedin Enterprise Investment Trust PLC ("Dunedin Enterprise" or the "Company") is pleased to announce that its largest investment, CitySprint, has been realised with a portion of the proceeds being rolled over into a newco ("New CitySprint").

The realisation of CitySprint values the company at GBP175m and generates proceeds of GBP26.1m for Dunedin Enterprise. This compares to a valuation at 30 September 2015 of GBP23.2m. The proceeds are split between capital of GBP22.8m and income of GBP3.3m. The proceeds represent a return of 2.75 times over five years on the original investment of GBP9.8m when taking account of income previously received.

A total of GBP7.3m is being rolled over into New CitySprint in partnership with LDC for an interest of 5% in New CitySprint. Thus the net cash proceeds received by Dunedin Enterprise amount to GBP18.8m.

In anticipation of the sale of CitySprint, the Board reviewed Dunedin Enterprise's investment strategy and has concluded, following consultation with major shareholders, that it would be in the interests of shareholders as a whole to conduct a managed wind down of the Company. Accordingly, the Board intends to seek shareholder approval for the new strategy at the Annual General Meeting, which will be held in May 2016.

The Board expects to announce further details of the proposals in conjunction with the announcement of the Company's annual results on 18 March 2016 and to publish a circular setting out details of the proposals for posting to shareholders along with the 2015 annual report in due course.

If the proposals are approved by shareholders, the Company will continue to meet its current commitments but no new commitments will be made. Dunedin Buyout Fund III LP ("DBF III") still has almost two years left in its investment period. As at 18 February 2016, the Company had outstanding capital commitments to all funds of approximately GBP42.2m, of which DBFIII accounts for GBP26.7m. Taking account of the cash consideration received on the sale of CitySprint and the recent commitment to Alpha Financial Markets Consulting, cash balances total GBP5.3m at 18 February 2016. In addition the Company has a bank facility of GBP20m.

[dr biotech] 19/2/2016 08:30

Good results, capital position is sound and the yield is above 5%. Whats not to like?