Views on Standard Life Aberdeen shares?

pinklady21 · 1 June 2018 at 5:26PM

SLA shares seem to have dropped quite a bit further this week on the news about the shareholder windfall. Is this a signal that the company is not actually doing as well as the senior bods want us to think it is?

Wish I had sold my shares when they were over 400p, now down to around 350p.
Do they have further to fall? What might bring the price back up?
Sorry if these are silly questions, these are the only shares I hold (yes I know, all eggs in the same basket etc), happy to hold onto them, but not if they are going to go the way of Northern Rock or RBS......

paid4it · 1 June 2018 at 9:28PM

Can’t say if they will go down or up but they do pay a good dividend

DairyQueen · 2 June 2018 at 8:32AM

I also own these shares. I don't have many single-company investments but kept these (acquired when they demutualised). All single-company investments are high risk so if you're not comfortable with the risk then you should consider selling at some point regardless.

It would require a crystal ball to determine what will happen with the share price but you should consider the current shareholder windfall proposal before deciding whether to sell (and when).

The share price took a hit when SLA lost a big contract earlier this year:
https://www.bbc.co.uk/news/uk-scotland-scotland-business-43070583.

The return of capital to shareholders is controversial (thus the recent fall).

The price should rise when/if the proposed share buyback takes place. SLA are also proposing to return cash to shareholders in addition to the buyback:
https://www.bbc.co.uk/news/uk-scotland-scotland-business-44296599

A shareholder vote on this proposal takes place this month. Did you receive information about this?

This article provides a brief overview of last year's merger. What's your view of the impact of passives on the actively managed fund market? In general? Specifically on SLA? Do you believe that reducing capital in this way will have any negative impacts? How do you view the sale of their insurance business? (The kind of questions you should ask yourself before making any decision re: whether to retain or sell): https://www.moneyobserver.com/news/standard-life-and-aberdeen-join-forces-what-it-means-investors

Your questions aren't 'silly' but they do suggest that you are not sufficiently informed to make single company (i.e. high risk) investments. I should add that I'm also in this category but that realisation came too late to avoid several mistakes. Single company shares now only total a few % of my portfolio and I am happy to accept a higher risk on those I still own.

The volatility of the share price forms part of that risk and sharpish rises and drops go with this kind of investment territory.

Alexland · 2 June 2018 at 10:17AM

I find individual companies interesting but I stopped buying them a long time ago. Often even the employees and management don't really know what will happen so what additional insight does the DIY investor have?

bundoran · 2 June 2018 at 10:20AM

Alexland wrote: »

I find individual companies interesting but I stopped buying them a long time ago. Often even the employees and management don't really know what will happen so what additional insight does the DIY investor have?

I feel the same way. As a DIY investor I realised that if something's going on then I'll always be the last to know.

I only invest in passive index funds now.

Wizard_of_Id · 2 June 2018 at 10:26AM

The circular published this week reads well but then that is what it is meant to do.

It looks like you will have a few fewer shares after the buy-back but I am hoping there will not be too much of an effect on the share price during the actual process.

What the market thinks is any bodies guess though.

I will happily receive my £415 bonus and look for something to spend it on

BLB53 · 2 June 2018 at 10:27AM

I echo above comments. Holding one or two shares will always be a rollercoaster ride so my advice would be to sell and reinvest in a low cost diversified multi-asset option like Vanguard Lifestrategy.

boo-hoo · 20 July 2018 at 6:16PM

Seeing as it was a done deal even before the General Meeting does anyone have any idea when we might get the "windfall". I seem to remember it was soon after they sold their Canada interests we received a cheque and fewer shares.
Thanks in advance

DairyQueen · 20 July 2018 at 9:02PM

I think it also requires regulatory approval. The SLA website suggests the deal will complete third quarter this year:https://www.standardlife.com/sl/proposed-strategic-partnership.page

digannio · 21 July 2018 at 4:17PM

One thing that Standard Life will have to sort out is its disastrously under-performing giant Gars fund which has been shedding billions but still stands at around £17bn. Its five-year performance is a grand total of 5% and over the past three years it stands at -6.3%. It's an important fund for the company but shrinking by the month.

E&G · 22 July 2018 at 9:09AM

Berenberg say they are 'not that cheap' but still have a target of +10% on the current SP and yielding nearly 7% with a bit of diversification potential given its sensitivity to emerging markets then SLA is definitely one for the watch list (for when I have a bit of cash to play with).

Views on Standard Life Aberdeen shares?

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