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Standard Life Aberdeen ‘still a value play’, according to analysts

Analysts at Jefferies have maintained their buy rating on the newly-merged Standard Life Aberdeen despite the potential loss of a major £109bn mandate.

In a note to investors this week, Jeffries says it does not have to revise its modelling from mid-March, when it predicted a positive future for the firm amid a battle to hold on to Scottish Widows’ funds and the sale of its life business to Phoenix.

While Jefferies is predicting a slight fall in earnings per share in the short-run, it notes that SLA could recover by buying back shares.

The note reads: “SLA now becomes a fee-based business, gains a strategic partner and strengthens its financial position allowing it to ‘accelerate’ its growth strategy…SLA is a value play in our view”.

The prediction from Jefferies is that post-tax profits for 2019 will fall by £93m, assuming the loss of the Scottish Widows mandate in the first half of the year, but by 2021 they will rebound to reach £882m, up from £705m currently.

However, the analysts note that investors still lack clarity on how proceeds from the sale of SLA’s life business would be used.


File image of graph showing stocks and share prices rise and fall

SimplyBiz enters Aim market at 170p a share

Support service provider SimplyBiz has completed its listing on the London Stock Exchange. SimplyBiz, which also offers its own range of funds and panel services to providers, issued its entire share capital to the Aim market at 8am today. With a placing price of 170p per share, the firm has achieved a market capitalisation of […]


Which firms are winning the race on wealth management?

Traditional wealth managers have proved themselves to be scalable and profitable businesses despite the hype caused by robo-advice models, analysts say. Wealth managers have also been shown to be more robust than pure asset managers amid mounting pressure on fund performance and fees. While Hargreaves Lansdown and St James’s Place continue to make the headlines […]

Steve Bee

Steve Bee: Why still no justice for Waspi women?  

For calls for change to still be falling on deaf ears in 2018 is beyond disappointing There is a serious issue with our pension system today that has been allowed to continue for many years with no resolution. Over 20 years ago, the government decided to require millions of older people in the future to […]


Case study: administration — managing group life schemes

Our client leads the global market in high-tech electronics manufacturing and digital media. The trustees of the company’s final salary pension scheme insure death-in-service lump sum and dependants’ pension death benefits for active employees, as well as dependants’ pension benefits for deferred members (those who have left service).


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