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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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18 Mar 2016 11:55

Danske Bank sells headquarters for $212 mln to Standard Life

COPENHAGEN, March 18 (Reuters) - Danske Bank said it had agreed to sell its head office buildings in central Copenhagen to British insurer and asset manager Standard Life for 1.4 billion Danish crowns ($212 million). Denmark's largest financial institution will continue to lease the build

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14 Mar 2016 09:33

BROKER RATINGS SUMMARY: HSBC And Merrill Lynch Downgrade Admiral

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3 Mar 2016 09:35

BROKER RATINGS SUMMARY: Goldman Sachs Cuts Imperial Brands To Neutral

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2 Mar 2016 16:34

UPDATE 2-Standard Life fund arm raises governance concerns at VW, Shell

(Updates with company reaction, Standard Life stakes) LONDON, March 2 (Reuters) - The investment arm of British insurer Standard life said on Wednesday it would step up its engagement with management at Volkswagen and Royal Dutch Shell over certain concerns it has regarding corporate govern

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2 Mar 2016 13:08

CORRECTED-Standard Life fund arm concerned by governance at VW, Shell

(Corrects name of VW executive in second paragraph to Hans Dieter Poetsche) LONDON, March 2 (Reuters) - The investment arm of British insurer Standard life said on Wednesday it would escalate its engagement with management at Volkswagen and Royal Dutch Shell, citing governance concerns.

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22 Feb 2016 13:49

Monday broker round-up

(ShareCast News) - Coca-Cola Hbc: JP Morgan reiterates neutral with a target price of 1450p, Nomura stays at buy with a 1330p target and Deutsche Bank keeps at hold with a target price of 1500p. Standard Life: JP Morgan keeps at overweight with a target of 465p and Deutsche Bank reiterates buy, 415p

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19 Feb 2016 12:17

LONDON MARKET MIDDAY: Mixed Market Awaits Outcome Of UK-EU Talks

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19 Feb 2016 10:28

WINNERS & LOSERS SUMMARY: Coca-Cola HBC Defies Foreign Exchange Hit

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19 Feb 2016 09:46

UPDATE 1-Standard Life sees benefits in Europe, prepares for possible Brexit

* Markets likely to remain volatile, says CEO * Full-year pretax operating profit up 9 pct * Solvency ratio comfortably above minimum requirement * Shares up 1.2 pct (Recasts, adds share price) By Carolyn Cohn LONDON, Feb 19 (Reuters) - Clients of British insurer a

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19 Feb 2016 08:34

LONDON MARKET OPEN: Coca Cola HBC, Standard Life Gain In Mixed Market

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19 Feb 2016 08:21

LONDON BRIEFING: Coca-Cola HBC And Standard Life Impress With Results

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19 Feb 2016 07:15

Standard Life Lifts Dividend After Rise In Pretax Operating Profit

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19 Feb 2016 07:10

Standard Life inflows rise despite tough markets

(ShareCast News) - Standard Life bucked volatile global markets to post a 9% rise in pre-tax operating profits to £665m with a £38m reduction in the spread/risk margin and diluted operating EPS of 26.1p. Assets under administration were up 4% to £307.4bn in volatile markets, driven by net inflows of

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18 Feb 2016 13:05

Friday preview: Standard Life reports full year results

(ShareCast News) - Insurance giant Standard Life is expected to report broadly flat full year profits on Friday, according to UBS. Pre-tax profit in the full year is forecast to rise slightly to £613m in 2015 from £608m the previous month, driven by a 16% drop in profits in Europe and the UK. UBS s

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12 Feb 2016 16:01

Earnings, Trading Statements Calendar - Week Ahead

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