UK’s largest listed fund manager reports a rise in assets under management but doesn’t quite hit profit expectations.
Standard Life Aberdeen (SLA) provides mixed update for investors
- 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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