Standard Life Aberdeen Share Discussion Threads

[edmundshaw] 09/1/2019 17:16

"...This will include £750m of share buybacks, which will increase earnings per share and reduce the number of shares on which a dividend must be paid. I suspect that the combination of these two factors will make the dividend more affordable."

Um, a bit of double counting there I think. And no quantification (which is not exactly a testing exercise). But otherwise quite appealing waffle... :-)

[nico9] 09/1/2019 15:44

Good posts guys.
I think we also need to remind ourselves of the Director buys fairly recently. IMO thats usually a good sign but not always

[cyberian] 09/1/2019 14:13

Again HDFC standard Life in India and the 19% holding plus other ties SLA have with Phoenix are on the up...share price wise, and Deutsche Bank analyst very recent view/paper on demise or downside prospects for European Insurance companies appears somewhat mistaken, at least at present. Of course SLA has already signaled and the market knows that it has basically lost a slug of AUM with the recent move by Lloyds on the Scottish Widows front, but best reminded that the margins with that entity were low and accounted for only about 5% of SLA's revenues...so not overly material. However, it was a loss but I would argue that that is already in the share price The new Chairman will be expected to enliven management and other material aspects of the SLA portfolio of business and interests, and with a hope for positive outcome in the US/China (which both parties now see as critical), we may well see a more positive momentum here...once momentum of positive expectations happens then the share price can gain ground very fast. We need to concentrate on new news/expectations rather than old news which I think has already been addressed in the share price I am long!!!

[cyberian] 09/1/2019 09:55

Masureenguy...thanks for your post...hope the full FOOL comment also reminds the readers that the share consolidation in November lowers the number of shares in issue much more than the buy-pack program, and that further helps dividend and its cover rate. So all in all we could be in for a decent improvement here, plus with all the issues in the EU, the UK maybe able to steer a decent path through the current confusion, and benefit. France, Germany, Italy and Spain all have significant economic problems etc. so despite being a remain supporter the UK can be guided into a rewarding future. Politics need to change here and there could be some helpful developments in due course. The US/China relationship is key to almost everything else despite all the other global issues, and a more balanced trade deal is certainly in their joint interests, regardless of leadership matters/style. A trade deal in my view is the absolute key to the driver in equity markets through this year, and current views are encouraging...but, that needs to be converted and soon.

[meijiman] 09/1/2019 08:49

Doesn't the sap writing this mean £Bn for funds under management?

[masurenguy] 09/1/2019 08:04

This 9% yielder looks interesting

FTSE 100 asset manager Standard Life Aberdeen (LSE: SLA) offers a pretty extreme 9.5% dividend yield. At this level, there has to be some risk of a dividend cut. The numbers make it clear why this might be — forecast earnings of 23.5p per share for 2018 are not enough to cover the expected dividend of 24.3p per share. Forecasts for 2019 tell a similar story — so is this a dividend trap to avoid? I’m not so sure. I’ve added Standard Life Aberdeen to my own watch list because I think the shares could offer real value at current levels. I also believe the dividend might be sustainable. Let me explain.

£1.75bn return could secure dividend

It’s less than two years since Standard Life merged with Aberdeen Asset Management. The process of changed triggered by this mega-deal is still ongoing. As part of the merger, Standard Life’s insurance operations were sold to FTSE 250 firm Phoenix Group. This deal included a cash payment of £2.3bn, of which £1.75bn is being returned to shareholders. This will include £750m of share buybacks, which will increase earnings per share and reduce the number of shares on which a dividend must be paid. I suspect that the combination of these two factors will make the dividend more affordable. At this stage, I don’t expect a dividend cut.

Buy, sell or hold?

What concerns me more are the continued outflows from the group’s funds. Some customer withdrawals were expected when the two groups combined. But these rose from £12.4bn to £16.6bn during the first half of 2018, reducing the group’s assets under management from £626.5m to £610.1m. Asset management is the main focus of the combined group’s business. So progress in this area is needed. However, at current levels I think a fair amount of bad news is already priced into the shares. As I explained earlier, I think the 9.5% dividend yield could be sustainable. So at this level, I’d rate Standard Life Aberdeen as a turnaround buy.

[joshuam] 09/1/2019 07:34

SLA keep buying share's and cancelling them anyone know how long this will go on for

[rathlindri] 08/1/2019 12:44

Deutsche Bank Downgrdades SLA 07/01/19

Standard Life Aberdeen was cut to 'hold' from 'buy', with the target price trimmed to 295p from 405p, also due to its exposure to markets and UK political risk. In addition, DB pointed to the fact that Standard Life faces bottom-up headwinds in the form of persistent net outflows from some of its highest margin funds.

Let's hope they are being overly pessimistic

[internet3] 08/1/2019 12:23

I WISH I KNEW REALLY WHY THIS COMPANY IS SO LOW?

ITS SURELY UNDER VALUED

[tornado12] 08/1/2019 11:04

I’m hoping for at least solid H2 results with focus in retaining the divi after massive share buyback program to improve EPS coverage. I don’t expect this to solely support the share price as the other indicators such as revenues/AUM plus macro-economics are playing an important part in this business sector. I remain confident on the medium/long term prospects and hold for ROI and hopefully share price growth in coming years.

[samwn1] 07/1/2019 23:10

Deutsche Bank downgraded a series of stocks on Monday as it cut its stance on European insurers to 'neutral' from 'overweight'.

...and also cut Standard Life Aberdeen to 'hold' from 'buy', with the target price trimmed to 295p from 405p.

Copied from ADVFN Evening Euro Markets Bulletin

[stewart64] 04/1/2019 14:42

I guess when the results do start to come through for H2 we will see if these lowest ever valuations ( compared to balance sheet and profit fundamentals)on the likes of Standard,Aviva and Taylor Wimpey are overly pessimistic. Though even if they pull through this time no doubt the Market will then focus on doom for H1 2019. Lose, lose until Brexit is done.

[stewart64] 04/1/2019 14:32

Chinese...they have been promising immediate bottom line profit improvements because of integration and " cost synergies". Can't help thinking I am going to be disappointed. Was 311m profit from continuing operations in H1. Anybody's guess if they can hold H2 at over 300 million with cost efficiencies offsetting a challenging backdrop of falling Equities on their client's sentiment.

[cyberian] 02/1/2019 15:15

I am looking for some positive changes to be triggered by the new Chairman...as stated before he has excellent reputation and some outstanding Far East contacts/connections. Maybe some new blood will be introduced in management but may take a few weeks before we see something significant, however, anticipation can be a good driver in the share price after the a recent pull-back!!
HDFC Standard Life India share price is holding up at higher levels and Phoenix is also looking quite robust given difficult market conditions.

[mcunliffe1] 02/1/2019 13:24

That's an easy call Chinese I. Get rid of one of the two CEO's (actually, get rid of both as neither seems to be managing well).

[chinese investor] 02/1/2019 13:05

We now need the efficiency savings !

[uppompeii] 30/12/2018 10:12

You may be right. With profits policy holders used to be the owners of mutual companies, now it's the shareholders. I can't recall how the status of the wp policy holders is affected by the distribution of profit to share holders. I suppose from SLA's point of view you relinquished your ownership or acthally transferred your ownership from the wp policies to your shareholding. So Peter robbing Paul.

[mcunliffe1] 30/12/2018 09:52

I predict a large drop in the terminal bonuses of the With Profit policies still held by many - including me. They dropped the bonus by 8.5% (approx.) in August 2018. February 2019 will be the next event. The original With Profit policy holders were given shares in the de-mutualisation. If still held alongside the same W.P. policies (I have three such) then in effect the dividends I receive are being paid for by the reduction in the terminal bonus. SLA will rightly say that T.B.'s are NOT guaranteed. Perhaps neither are affordable dividends in this market.
Happy New Year to all.

[unastubbs] 30/12/2018 00:30

www.telegraph.co.uk/business/2018/12/29/billions-pour-standard-life-aberdeen-dismal-year/

The world’s top money managers, ­including Standard Life Aberdeen and BlackRock, have seen billions pour out of their ailing funds in their worst year since the financial crisis as they struggle to battle widespread strife in the asset-management industry.

City fund giant Standard Life Aberdeen’s market value has halved during a rocky first year following an ambitious £11bn merger.

Fees in asset management are under pressure from the rise of passive ­investment and zero-fee funds, while outflows have accelerated in 2018 as market turmoil prompts investors to yank money out of equity funds.

An index tracking shares in Wall Street’s mammoth asset managers has slumped to its lowest level in two years, suffering its worst yearly slide since 2008.

BlackRock, the world’s largest money manager, has shed a quarter of its value in 2018, $14bn (£11bn), while Invesco’s shares have plunged 53pc.

Standard Life Aberdeen finished 2018 the second-worst-performing stock on the FTSE 100 and revealed in August that £16.6bn had left the company in the first half of the year.

A volatile final quarter for markets could ramp up the pressure on co-chief executives Keith Skeoch and Martin Gilbert. RBC Capital Markets analyst Gordon Aitken said Standard Life Aberdeen’s dividend is now less secure, put under pressure by the global slump on stock markets.

After selling its insurance business to Phoenix earlier this year, “the cash generation of the business is now leveraged to prevailing market conditions”, he added.

[edmundshaw] 28/12/2018 16:26

Well it's a bit of both really RCT. Otherwise it doesn't work very well!

[rcturner2] 28/12/2018 16:19

This is a buying market not a selling market.

[uppompeii] 28/12/2018 15:47

Have to say my cheeky 228 has paid off. Aviva however just back to what I paid.

[joshuam] 28/12/2018 15:20

260 getting close