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Standard Life windfall news
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ReportInvestor
Posts: 3,646 Forumite
ABC Money
Tuesday 18th April is the day investors will learn their share allocation and also a price range that the board expects.
At the moment the press - presumably following Standard Life's lead - are keeping expectations low, to the point where the Maths wouldn't get past a Key Stage 3 standard.
ABC repeats the usual low windfall mantra (£500-£1000) to 2.4m members and says that Standard only expeced to raise £1 billion in a flotation expected to be worth £4bn-£6bn.
If we were to take £5.8bn towards that top range, minus £1bn capital for Standard = £4.8bn divided by 2.4 million members = £2,000 average.
"....Analysts feel the firm will get the backing for the floatation, which will be the largest since telecom company Orange raised 1 billion pounds in 2001...."
Let's hope it goes well, and the Standard feels able to set a decent basic rate windfall for everyone.
Tuesday 18th April is the day investors will learn their share allocation and also a price range that the board expects.
At the moment the press - presumably following Standard Life's lead - are keeping expectations low, to the point where the Maths wouldn't get past a Key Stage 3 standard.
ABC repeats the usual low windfall mantra (£500-£1000) to 2.4m members and says that Standard only expeced to raise £1 billion in a flotation expected to be worth £4bn-£6bn.
If we were to take £5.8bn towards that top range, minus £1bn capital for Standard = £4.8bn divided by 2.4 million members = £2,000 average.
"....Analysts feel the firm will get the backing for the floatation, which will be the largest since telecom company Orange raised 1 billion pounds in 2001...."
Let's hope it goes well, and the Standard feels able to set a decent basic rate windfall for everyone.
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Comments
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ReportInvestor wrote:If we were to take £5.8bn towards that top range, minus £1bn capital for Standard = £4.8bn divided by 2.4 million members = £2,000 average.
To most members the term "average" in the context of windfalls is completely irrelevant.
Whilst many members, including all the baggers, will qualify for very little, if anything, above the basic "loss of membership" amount of, presumably, £500, long-standing members with larger policies will get a lot more than any "average" figure.0 -
True. Indeed the minimum "loss of membership rights" may be less than £500.
But surely financial journalists are capable of explaining different types of average to their readers?
At least investors will have more of an idea come Tuesday
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ReportInvestor wrote:the minimum "loss of membership rights" may be less than £500.
Yes, and as a long standing member I sincerely hope it is.0 -
To most members the term "average" in the context of windfalls is completely irrelevant.
The average policy is worth 15,000 quid.
It's a bit hard to say how long the average policy has been in force ( length of membership also affects your windfall) but I'd reckon it might be around the 13-15 year mark.
Don't quote me on that though.
Trying to keep it simple...0 -
I'd go for just less than 10 years for the average policy, given the very high early surrender rate for with profits endowments.0
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You could be right RI, but one suspects that the rate may have slowed a bit once the DM plan was announced
Trying to keep it simple...0 -
Although many sensible investors like Fred Woollard got out anyway because they knew that those who exited were being offered more than their fair asset share by the old Standard Life management.0
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IRC '£500' was the kind of figure that SL management derided as the likely windfall had members voted for demutualisation in the year 2000 ballot. At the time this was black propaganda, of course, trying (sucessfully) to coral votes against. Let's hope the same dodgy technicians are the ones responsible for the currently quoted '£500-£1000' figure (and equally far out).....under construction.... COVID is a [discontinued] scam0
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The FT
More good news! Standard Life losses in 2004 were "ONLY" £100 million according to the FT
This is much better than expected. That should see the company into profit in 2005 and on an upward curve into the future.
Scotsman
Tuesday's meeting for the announcement is a sell-out
And will the website cope with the traffic from eager policyholders?
The Scotsman thinks Standard has a lot to do to make up for the past.
Update - The FT was wrong - The 2004 losses were £340m
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Sunday Telegraph
5% bonus shares for investors who hold onto their shares for 12 months
Standard aims to create a "people's Plc" and to prevent a mass share sell-off.
Sunday Independent
Windfall surprise at Standard
Someone in the press finally gets their calculator out :rolleyes: and cottons onto the fact that the mean average windfall may be £2000 (but with most receiving £1K or less).
Sunday Herald
Standard to be valued at £6bn
The Glasgow scribblers expect a top of the range price that would put Standard in the UK top 50 companies.
Investors' Association
Even more up to date news and views
Our resident "Standard Life watcher" estimates that a £500 basic windfall plus 10% of policy values is still possible should Standard float at £6bn. But please be aware that the basic might still be less, and that the variable will be heavily subjected to an adjustor calculated by the length of time you have held your policy, and its type. And both basic and variable will still be dependant on the [unknown] share price! 0
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