Standard Life Aberdeen Share Discussion Threads

[mcunliffe1] 27/1/2020 17:46

Skeoch thinks "the strength of governance" was good because Woodford was forced to close his fund when it became common knowledge it was a disaster.

What a laugh. Woodford extracted a VERY large payment for himself shortly before that. Not a lot of governance then was there Keith.

[spud] 27/1/2020 15:17

Standard Life Aberdeen CEO: Lessons must be learned from Woodford
Keith Skeoch says the Woodford scandal should lead to a shake-up of the governance framework used in the UK retail funds market



By David Ricketts and Rupert Steiner
January 27, 2020 12:01 am GMT

The chief executive of Standard Life Aberdeen, the UK’s largest listed asset manager, says the scandal that brought down Neil Woodford should lead to a shake-up of the governance framework used in the UK retail funds market.

Keith Skeoch, who has been sole chief executive of the £577bn Edinburgh-headquartered company since March 2019, said the implosion of Woodford Investment Management in October should prompt the retail funds market to adopt processes similar to those used by large investors, such as pension funds.

Speaking to Financial News at the World Economic Forum in Davos, Skeoch said: “In the institutional world there is a bunch of consultants who act as gatekeepers — it is all about performance and culture as you look to select fund managers. A lot of the good things that happen in that space need to happen in the retail end of the market.”

Skeoch added that while “Woodford was a very small part of a very large industry”, it was important that “people learn lessons” from the fallout.

“Certainly one of the things it points to is the strength of governance throughout the whole value chain,” said Skeoch.

Woodford was forced to suspend his £3.7bn Equity Income fund in June to allow him to sell some of its largest unquoted holdings in order to pay back money to investors.

In December Standard Life Aberdeen’s asset management arm took over the £267.6m Woodford Income Focus fund — another of Woodford’s investment vehicles that was suspended.

Skeoch’s comments come as the UK regulator plans to increase scrutiny on the asset management sector following the Woodford scandal.

In a “Dear CEO” letter sent to asset management bosses last week, the Financial Conduct Authority said it plans to review the way investment funds are governed in the UK. The work is expected to be completed in “early 2020”.

In the letter, the FCA said the overall standards of governance “generally fall below our expectations”. It added that funds offered to retail investors in the UK “do not consistently deliver good value, frequently due to failure to identify and manage conflicts of interest”.

In particular, the FCA plans to look at the role played by authorised corporate directors — the specialist, independent companies used by fund managers to administer funds and safeguard investors’ interests — which were thrown into the spotlight during the Woodford scandal.

Link Fund Solutions, the ACD responsible for the Woodford Equity Income fund, took the step to suspend and later shut down the fund.

Almost 3,500 investors who were trapped in the fund before the collapse of Woodford’s investment company are preparing to take action to recover losses.

spud

[woodhawk] 24/1/2020 11:25

Quite glad they're down as I just bought some.

[spud] 24/1/2020 10:47

Probably explains why they are down today in a massively up Market!! :-))spud

[woodhawk] 24/1/2020 09:24

FWIW Credit Suisse have upped their SLA target today:

24 Jan Standard Life Aberdeen Credit Suisse Neutral 314.25 320.00 335.00 Reiterates

[spud] 23/1/2020 11:15

Standard Life Aberdeen CEO ‘cautiously optimistic’ on economic outlook



spud

[spud] 21/1/2020 11:07

FWIW:

Standard Life Aberdeen PLC (SLA:LN) (SLFPY) PT Lowered to GBP3.26 at Morgan Stanley.

spud

[garycook] 21/1/2020 09:10

21 Jan Standard Life Aberdeen UBS Buy 311.10 340.00

[mcunliffe1] 17/1/2020 13:14

Thanks spud.
As we approach February it’s the time the Standard “adjusts”; its With Profit terminal bonus.
They’ve reduced this in the past couple of years effectively reducing the total value of a WP policy holding.
If, as they’ve stated, they expect a 4% profit increase followed by a 10% increase I would expect NO reduction in terminal bonuses. This belief is also aided by the benign investment climate of the past months.
I’ll post an update after Feb.

[spud] 17/1/2020 11:24

Forget the top Cash ISA rate. I’d pocket 5%+ from these 2 FTSE 100 dividend stocks
Peter Stephens | Thursday, 16th January, 2020



With interest rates forecast to stay at low levels over the medium term, the prospect of generating a high income return from a Cash ISA seems remote.

As such, now may be the right time to focus your capital on FTSE 100 shares. In many cases they offer generous dividend yields, as well as the potential to generate capital growth.

With that in mind, here are two large-cap shares that could be worth buying today alongside a diverse portfolio of stocks.

Standard Life Aberdeen

The Standard Life Aberdeen (LSE: SLA) share price has made strong gains in recent months. For example, it has risen by 7% in the past three months, with investor sentiment seemingly improving as the business delivers on its strategy.

Its recent results showed progress is being made in growing its presence in the wealth advisory segment and in developing its range of funds. It is also making cost reductions across its business, which could improve its competitive position.

The rise in Standard Life Aberdeen’s share price means that it now has a dividend yield of 7%. Furthermore, the affordability of its dividend could improve since the company is forecast to post a rise in its net profit of 4% in the current year and 10% next year.

As such, now could be the right time to buy a slice of the business. Certainly, its progress is heavily linked to the outlook for the wider economy. But its high dividend yield and the progress it is making in implementing its strategy suggest that its risk/reward ratio is favourable for income-seeking investors at the present time.

spud

[spud] 13/1/2020 11:14

FWIW:

BARCLAYS RAISES STANDARD LIFE ABERDEEN TARGET TO 310 (300) P - 'EQUAL WEIGHT'

spud

[chinese investor] 10/1/2020 14:35

I'm more likely to invest in Aviva !

[mcunliffe1] 08/1/2020 19:14

Dr Biotech, I also like that fund. Its Citicode is BV33, its ISIN code is GB0031731812 and on the SLA platform its code is KR.

Its past performance (over 10 and lesser segments of years) has shown resiliance. I've been invested in that fund for a couple of years - using it as a "draw-down" pension pot. It's growing faster than I'm drawing-down.

A couple of others look good as well. They have codes on the Standard Life platform and names thus:

K3 SL Blackrock Ascent Life US Equity Pen. fund
1V SL Merian UK Mid Cap Pen. Fund
FK SL North American Equity Pen. Fund

I'm likeing the look of their past performance and given I don't manage those funds :-) it's the only measure I can use for future success.

[dr biotech] 08/1/2020 17:34

I've cut back here - believe there are other high yielders that have better cover. Just left with the free ones from the demutualisation.

I have increased my position in a couple their funds though. I particularly like their smaller co's fund run by Harry Nimmo, he has a good long term record. Thats growth rather than income though.

[spud] 08/1/2020 16:33

I can see no reason why not. Costs are being reduced and the funds under management are increasing. If money is required in a hurry, there is the option to sell their Far East portfolio (which I personally wouldn't want to happen).

spud

[tornado12] 08/1/2020 16:24

Every good bit of news helps .. Thanks Spud ... and for me SLA is a firm hold with hope they maintain at least the current divi rate for medium term

[spud] 08/1/2020 16:12

Phoenix drops Architas for ASI on £800m fund mandate.



Pension provider Phoenix Wealth has dropped long-standing asset manager Architas and has appointed Standard Life Aberdeen as its new investment management partner.

spud

[spcecks] 08/1/2020 15:44

Also happy to hold.

[spud] 08/1/2020 12:25

Article from August - Can't see anything could have changed but for the better imo. Happy to hold:

Reaction: Assets on the rise at Standard Life Aberdeen

Standard Life Aberdeen has given a bullish outlook after booking a steady rise in assets under management and administration as market gains helped offset outflows of client money.

Releasing its half-year results, the Edinburgh-headquartered investment giant said total assets under management and administration had risen 5 per cent to £577.5 billion with assets on its own platforms up 11 per cent to £66bn.

However, adjusted profit before tax came in at £280 million, down from £311m a year earlier, and just shy of City hopes.

The UK’s largest listed fund manager – created in 2017 through the merger of Standard Life and Aberdeen Asset Management – said cost efficiencies remained firmly on track with actions taken to date delivering some £234m of the £350m per annum targeted.

Key developments included holding on to £35bn of Lloyds Banking Group assets and gaining a licence to sell pensions products in China via a joint venture. Net outflows in the first half amounted to £15.9bn, down from £16.9bn a year earlier and £24bn in the second half of 2018.

Chief executive Keith Skeoch said: “We feel like the heavy lifting that is part of our transformation process to turn us into a world-class investment company is making very good progress.

“We have seen a big improvement in investment performance over the course of 2019. Given everything that we’ve done, we retain strong financial strength.

“Our focus is very much on the medium to long term rather than the short-run swings that are generated by the markets and sentiment.”

He added: “We recognised in the second quarter that a no-deal or messy Brexit was a rising probability so we have been improving and extending our contingency plans to make sure that, while we hope for the best, we are prepared for the worst. We’ve moved the people that we needed to move.”

The group said further progress had been made in building a “UK savings ecosystem”, securing £3.5bn of assets from Virgin Money and partnering with Skipton Building Society to provide its customers with access to SLA’s £15bn MyFolio range.

It also highlighted the continued expansion of its financial advice business, called 1825, including the acquisitions of the wealth advisory businesses of BDO Northern Ireland and Grant Thornton UK. The board declared an unchanged interim dividend of 7.3p.

Donald Brown, senior investment manager at Brewin Dolphin, said: “Two years after the merger that created the company, Standard Life Aberdeen remains in a period of transition.

“Market gains since January have boosted assets under management, but more depends on the performance of the group’s funds, which remains patchy. Meantime, the fact remains that net outflows continue, albeit at a slower pace.

“Although the fundamentals of a strong business are there in the long term and Standard Life Aberdeen’s shares appear cheap offering a high yield, the lack of underlying growth means patience is the key for investors.”

Steve Clayton, manager of the HL Select UK Income Shares, which has a holding in SLA, noted: "These numbers were a little below market forecasts, and showed a continuation of the outflows that the business has been suffering from in recent years. But progress is being made nonetheless.

"Assets under management and administration rose 5 per cent to £577.5bn, with market movements and acquisitions offsetting the ongoing net outflows. Reported profits were massively boosted by a gain on selling part of their stake in HDFC Life of India, while the underlying numbers came in at £280m, and earnings per share were up by 9 per cent to 8.9p. The interim dividend was unchanged at 7p per share.

"Standard Life Aberdeen has plenty of capital and valuable non-core assets to support their dividend for some time to come. This gives the group time to fix the performance issues and resulting outflows that have dogged the asset manager for some time now.

"The yield is very attractive, currently over 7 per cent. But the sustainability of the payment longer term requires the group to return to more predictable organic growth and net inflows."

Graham Spooner, investment research analyst at The Share Centre, said: "The results from the UK’s largest listed fund manager are somewhat of a mixed bag for investors.

"The CEO believes the group are well placed to take advantage of the opportunities and at the same time deal with the challenges the industry faces. The caveat to this however is the asset management environment remains tough as a result of political and macroeconomic uncertainties.

"A further focus will be on efficiency and cost control. The dividend was maintained and with current yield of 8 per cent potentially attracting income seekers, we continue to recommend the shares as a 'hold' for investors willing to accept a medium level of risk."

spud

[mam fach] 08/1/2020 11:51

Excellent background information. Many thankx.
None of us know if dividend will be maintained.
Have to wait and see.The

[pierre oreilly] 08/1/2020 00:27

Well looking at the graph above, I'd estimate a price about 240 mid august, and about 336 a week or so ago. That seems to be 40% rise to me. Your silly mistake is using the current price, on which i didn't comment (apart from saying, to your great excitement, that it is down a bit recently).

Good luck in your aim to get the best performing share, in retrospect, from whatever time frame you care to mention (each time frame will produce a different result of course, showing the absolute absurdity of looking back in time and seeing what shares you should have been given instead of those you were actually given. You mention l&g as a great performer, but i bet i could find a few hundred shares with better performance, and probably tens of shares which are now worth nothing at all, but that would be pointless. (I doubt even that will cause you to think). Don't look back in anger. In any case, if you are only holding free shares, that holding is so negligible i can't see why it bothers you whether the price rises or falls.

[mcunliffe1] 07/1/2020 23:32

PO,

40% is a BIG number. The current share price is about 315p, (approx.). To have risen 40% the lower price would need to be about 225p.

That share price was last seen at Christmas 2018. December 2018 and Feb 2019 specifically - and even then not quite as low as 225p. (about 235 was the trough).

They peaked shortly before Christmas 2019 - at about 335. So, about 43% rise - after a year. Not three months.

In reality, in the last three months they've moved from about 304p on 3rd Dec to 336p on 2 Jan. That's roughly an 11% rise.

I'm not traumatised by the share price. I'm disappointed. Since these shares were "gifted" to me as recompense for my mutual ownership of a company I've had (ownership) dealings with since 1977 I've seen those share move from about 273p in 2006 to the current price of about 315p. That's a 16% rise over a period of almost 13 and a half years. (I know.......we've had divi's as well).

Not stunning though is it?

Meanwhile, in that same timeframe (1977 to now) I've seen many other investments perform somewhat better - SL pension investments being several.

L&G! Since 2006 they've risen 125%.

Makes you think PO - yes, EVEN you.

[pierre oreilly] 07/1/2020 21:11

I do realise you've had a pretty traumatic time recently, with your shareholding in sla rising by 40% during the last 3 months. Down a little the last couple of days, be thankful for small mercies.

[pierre oreilly] 07/1/2020 21:04

Mcun, I'm a little worried that sla may be the only share you own involved in a share buyback. We know you hate share buybacks, but love to own shares which do them for some reason. If you look harder, I'm sure you'd find some more buyback candidates which you could buy. You could then share your pain over several threads, explaining why they are such a bad idea but somehow make the company worth buying. Just think - several times the opportunity to whinge and moan and groan. Utopia.