Standard Life Aberdeen Share Discussion Threads

[fenners66] 09/3/2021 11:51

Well my expectation of SLA falling is happening (so far)

SLA down 3% and my switch up 1% makes me feel better this morning..

Could all change this afternoon of course.

[spud] 09/3/2021 11:27

Standard Life Aberdeen Sees Slower Exodus, Slashes Dividend
By Benjamin Robertson
9 March 2021,


Standard Life Aberdeen Plc clients pulled more cash from the fund manager in 2020, but at a far slower pace than the previous year.

Net outflows totaled 29 billion pounds ($40.2 billion) last year, compared with 58.4 billion pounds in 2019, according to an earnings statement on Tuesday. Withdrawals were tempered by buoyant markets, with assets under management dropping slightly from a year earlier to 534.6 billion pounds.

The firm cut its full-year dividend by around a third to 14.6 pence as adjusted pre tax profit fell 17% to 487 million pounds. The company’s shares fell as much as 3.3% in early London trading.

Most of the withdrawals were by a single client, Lloyds Banking Group Plc, which has been steadily pulling funds since a dispute tied to the mega-merger that created Standard Life Aberdeen in 2017. Without those, net outflows would have been just 3.1 billion pounds.

“We have seen growing momentum in the second half of 2020 with improved investment performance and flows which represent an inflection point as we pull out of the post-merger era,” Chief Executive Officer Stephen Bird said in the statement.

Bird is seeking to turn around the money manager’s fortunes after being hired for the top job in September. He’s already rejigged his senior team and late last year outlined plans to reverse the investor exodus by building a stable of passive products that could eventually account for as much as 30% of assets at the active-biased manager.

The combination of Aberdeen Asset Management and Standard Life in 2017 was intended to boost scale, allowing the firm to compete with low-fee passive rivals that have seized an increasing share of the market in recent years. Some of the expected payoffs from the merger proved illusive as the firm struggled to handle two co-CEOs, multiple brands and more than 600 funds, while the company’s market value has shrunk.

The firm said Tuesday it plans to rebrand its various divisions under a single name, while also moving ahead with exits from Indonesia and Nordic real estate as well as the sale of its Parmenion platform.

spud

[fordtin] 09/3/2021 09:54

Cheers fenners.
coincidentally that's the website and the process which led me to invest in SLA.
There are a few high yield shares I've shied away from because the div looked fragile, but I really didn't suspect that SLA would prove to be one of them.
At least I got out with a small profit.

[fenners66] 09/3/2021 09:51

Just noticed this line , ( I was going to close the RNS without now reading the rest of it but cannot resist commenting on this)


"Our new strategic pathway towards growth over the medium term"

So they envisage taking a path .... that will get them going towards ... growth .... in a few years time.

So until they get on a growth trajectory they are basically saying they are still in decline !

How many more years of decline to come ?

Now I know I take issue with BS overoptimism but really stating that some years down the line they aim to start growing ?

So if the business shrinks enough in the next few years we can maybe improve a bit later with luck ?

[unastubbs] 09/3/2021 09:46

once again we see that when a company holds its dividend over several years rather than increasing it however fractionally, then inevitably a cut is on the way...

the point fenners and others make about the buyback and STILL not maintaining the dividend is so true. glad i am not holding these and will not be buying.

[fenners66] 09/3/2021 09:36

fordtin - I was deliberately vague as never want to appear to be trying to suggest I know any better than anyone else....

I can take issue with BS in company RNS's easily enough...

What I can suggest is take a look at or make that link work for the site...

The stocks shown at the top of the list for the FTSE for example show much better yields than here, so there are targets there.

One thing to make sure independently though , is have the dividends been cut or are the cuts reflected already in the current yield and check for specials which would not be ongoing.....

[chinese investor] 09/3/2021 09:27

Aviva (AV.) will be dishing out super dividends in the next few months !

[chinese investor] 09/3/2021 09:25

Good points fenners !

[meijiman] 09/3/2021 09:24

This company has been led by complete mugs for decades (don't rock the boat whatever you do old chap). Feel a bit sorry for the present incumbent trying to get this running more efficiently but he seems to be someone who might be able to get a grip on this via decisive action. I mean look at the difference the bird at Aviva is having...another company with decades of drift behind it.

[fordtin] 09/3/2021 09:24

fenners -
I sold mine too.
Still dithering about where to move the money to. I want to maintain diversity, so looking for something I don't already hold.
Would you mind saying what "better yield elsewhere" you've just bought incase it's something I haven't looked at?

[fenners66] 09/3/2021 09:21

"Reflecting current operating profitability, industry trends, and economic and market uncertainties, the Board is rebasing the dividend to a level from which it can be grown"

What a pile of BS

That line should have been
Reflecting current operating profitability and our lack of faith in fixing this decline in future , we have cut to make sure there is still enough cash to pay our board bonuses and our huge severance packages when the shareholders finally have had enough of us. (But we know the sheep will take a long time to get organised).

INDUSTRY TRENDS - wtf !
economic and market uncertainties.
World markets at all time highs and they cannot make enough to ensure the dividend even after reducing the numbers of shares!

Do they discuss this BS before its published ?

You can imagine the meeting .... getting some consultant in BS speak in to change the words and try and say nothing...

[tornado12] 09/3/2021 09:11

The divi cut is disappointing and these BB only help to inflate the EPS and the bonuses of the board.

[fenners66] 09/3/2021 09:07

Well they are not running it for my benefit as a shareholder any more.
Sold out.
Surprised it has not dipped further, maybe will in the next few days when more retail investors learn of the halving of the final dividend.

Feel fortunate to get out at a good profit , funds have gone to a better yield elsewhere.

[unastubbs] 09/3/2021 07:56

pierre - i agree 100%. crazy to say companies are run for the benefit of their shareholders. they are run for the benefit of the board. end of.

[chinese investor] 09/3/2021 07:38

Thanks una !

[unastubbs] 09/3/2021 07:36

to be paid 25 may 2021, not 2020 as you've written CI

[fenners66] 09/3/2021 07:19

I noticed you changed the header pretty quick there CI

[unastubbs] 09/3/2021 07:18

The Board remains committed to delivering a dividend that is sustainable over the medium term. Reflecting current operating profitability, industry trends, and economic and market uncertainties, the Board is rebasing the dividend to a level from which it can be grown

Therefore the Board is recommending a final dividend in respect of 2020 of 7.3p per share, bringing the total dividend for the year to 14.6p per share. The Board intends to maintain the total dividend at this level until covered at least 1.5 times by adjusted capital generation, at which point the Board will seek to grow the dividend in line with its assessment of underlying medium term growth in profitability

[fenners66] 09/3/2021 07:18

Final dividend halved !

Despite masses of buybacks.

So buybacks enable orderly exit of other funds whilst the shareholders get shafted.

Another buyback fail. Would have been so much better just maintaining the ord dividend for years..

[chinese investor] 09/3/2021 07:17

Final Dividend Slashed !

[mcunliffe1] 08/3/2021 14:21

I'd also be happier if the share price stayed above 320p for more than a day or two, suetballs.

[suetballs] 08/3/2021 11:28

I'd be more than happy with 14.3p.
Suet