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UBS downgrades Standard Life due to GARS fund outflows

Tue, 24th Jan 2017 09:45

(ShareCast News) - UBS downgraded Standard Life to 'sell' from 'neutral' and lowered its price target to 310p from 320p on expected earnings pressures from increased outflows from Standard Life Investments.The Swiss bank changed its rating on its expectation that earnings pressure will emerge in 2017 on SLI due to increased asset outflows from its flagship £42bn Global Absolute Return Strategies (GARS) fund, which is sold on its aim to provide positive investment returns in all market conditions over the medium to long term.The insurer's share performance is strongly linked to flows and performance of GARS but the fourth quarter of 2016 is estimated to see net outflows increase to around £3bn (including a large UK outflow) compared to the £1.5bn the the third quarter last year.According to UBS analysts GARS outflows are being particularly caused by structural trends that will be difficult to reverse at least in the near-term.This includes current performance below its benchmark, fund size constraining scope for longer-term investment outperformance, pension consultants putting the fund on 'watch' and risks to industry multi-asset flows which could fall toward 2013 levels potentially.The total forecasted multi-asset outflows are £3.9bn for the full year 2016 and £6bn over the full year 2017 resulting in earnings growth of 4%, which is half that of consensus. The bank expects good progress on costs but feels falling revenue will put pressure on ratios.UBS is however positive on asset growth of 8% per annum to 2018 for UK Life and that the company's 24.1% stake in merged HDFC Life and Max Life could be a source of upside over the medium term.The earnings per share estimates for 2017 fell by 9% to 27.28p.Standard Life's share price fell by 2.76% to 341.47p at 1057 GMT on Tuesday.
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27 May 2016 16:29

Friday broker round-up

(ShareCast News) - B&M European Value: Retail Jefferies reiterates buy with a 330p target and Citigroup keeps at buy with a target of 345p. Standard Life: Jefferies stays at buy with a 403p target. United Utilities: JP Morgan reiterates overweight with a target price of 1020p and Exane BNP Paribas

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23 May 2016 07:58

Standard Life says group assets up 2.1 pct in first quarter

LONDON, May 23 (Reuters) - Insurer and asset manager Standard Life said on Monday that total assets under administration rose 2.1 percent to 314 billion pounds ($455.33 billion) during the quarter to end-March, boosted by market and currency moves. Net inflows into the firm's various produc

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23 May 2016 07:42

TOP NEWS: Standard Life First Quarter Assets Under Administration Rise

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18 May 2016 19:36

Financials lead gains as interest rate curves steepen, pound pops higher

(ShareCast News) - Financials led gains in London, over on the Continent and across the Pond too, as interest rate futures continued to progressively - albeit only modestly - price-in a higher probability of a US central bank rate hike in the very near-term, perhaps as soon as the next month. As of

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17 May 2016 17:51

Standard Life faces investor ire over executive pay

* Nearly a quarter of votes cast against pay report * Latest British company criticised over boardroom remuneration * CEO moved to cede some of his long-term bonus * Higher pay partly due to shift away from insurance -chairman By Carolyn Cohn LONDON, May 17 (Reuters)

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17 May 2016 17:16

Regus Joins Standard Life In Facing Shareholder Protest On Pay

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17 May 2016 16:31

Standard Life Backs Remaining In EU, Shareholders Protest Pay

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17 May 2016 15:13

Standard Life shareholders overwhelmingly back pay report

LONDON, May 17 (Reuters) - An overwhelming majority of shareholders in Standard Life have backed the investment group's 2015 remuneration report. At the annual shareholder meeting on Tuesday, 77.69 percent of shareholders voted for the report and 22.31 percent voted against. (Reportin

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17 May 2016 15:12

Dividends Calendar - Week Ahead

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12 May 2016 12:45

Boosted By Asset Management, Standard Life Wins S&P Rating Increase

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12 May 2016 10:28

Market volatility after Brexit would hit L&G, Standard Life-Moody's

LONDON, May 12 (Reuters) - Legal & General and Standard Life are among insurers most exposed to market volatility if there is a vote for Britain to leave the European Union and their solvency levels could suffer, ratings agency Moody's said on Thursday. "We expect to see volatility in finan

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12 May 2016 00:01

Oil refiners, gas producers face higher costs from climate laws - report

By Susanna Twidale LONDON, May 12 (Reuters) - Oil refiners and gas producers could face higher production costs if countries use a high carbon price to follow through promises made at last year's global climate summit in Paris, research showed on Thursday. The landmark Paris Agreement

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10 May 2016 15:09

AGM, EGM Calendar - Week Ahead

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4 May 2016 07:52

Standard Life acquires AXA's Elevate

(ShareCast News) - Standard Life added more than 160,000 new customers and £9.8bn of assets under administration on Wednesday, announcing the acquisition of Elevate from AXA UK. The FTSE 100 firm said Elevate - registered as AXA Portfolio Services - would enhance its position as a platform provider

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4 May 2016 06:55

TOP NEWS: Standard Life To Acquire AXA's Elevate Wrap Platform

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