Standard Life Aberdeen (SLA) provides mixed update for investors

UK’s largest listed fund manager reports a rise in assets under management but doesn’t quite hit profit expectations.

Article updated: 7 August 2019 12:00pm Author: Graham Spooner

  • Results sees shares drop over 6% in early morning trading.
  • Group sees steady rise in assets under management, however net outflows of funds continue.
  • With the dividend remaining attractive, with a yield of 8%, we continue to recommend these share as a ‘Hold’.

The results from the UK’s largest listed fund manager are somewhat of a mixed bag for investors. Adjusted profit before tax is reported at £280m, lower than analyst expectations of £288m, while at the same time assets under management have risen from the second half of 2018 to £577.5b. Net outflows of funds continue, however this is at a slower rate than what we saw in the last six months of 2018. In light of the results, shares have fallen 6% in early trading.

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.

Our view on Standard Life Aberdeen - Hold

The dividend was maintained and with current yield of 8% potentially attracting income seekers, we continue to recommend the shares as a ‘Hold’ for investors willing to accept a medium level of risk.
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All information given including prices, yields and our opinion is correct at the time of publication. Our opinions on investments can change at any time and for our latest view please go to www.share.com. To understand how our Investment research team arrive at their views please read our Investment Research Policy.

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Graham Spooner

Investment Research Analyst

Graham started out as a fully authorised dealer on the Stock Exchange trading floor and for various banks, before becoming an FSA-approved investment adviser. Now a respected voice in the media, Graham’s share tips and comments on the markets are frequently sought by the national press.