Standard Life Aberdeen shares steady as group updates on performance

Enlarged company’s assets under administration drop

Standard Life Aberdeen shares steady as group updates on performance

Shares in Standard Life Aberdeen (LON:SLA) have been steady in today’s session, even as the unveiled a drop in its assets under administration. The nine-month update comes after Standard Life and Aberdeen Asset Management joined forces earlier this year in an £11-billion merger.

As of 10:24 GMT, Standard Life Aberdeen’s share price had added 0.68 percent to 416.60p, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing at 7,447.67 points, flat in percentage terms. The group’s shares have added more than 12 percent to their value over the past year, as compared with an over seven-percent rise in the Footsie.

Nine-month update

Standard Life Aberdeen updated investors on its recent performance this morning, disclosing in a statement that its assets under management and administration (AUMA) had dropped to £646.2 billion in the nine months to September 30, as compared with £647.6 billion as of December 31, 2016. Within total AUMA, Aberdeen Standard Investments assets under management were £569.7 billion, down from £580.6 billion. Standard Life Pensions and Savings assets under administration, however, increased to £182.3 billion, from £171.6 billion.

The group’s chief executive officers Martin Gilbert and Keith Skeoch commented that while the combined business had “experienced net outflows, these were in line with our expectations given the asset classes affected and the structural outflows from our lower margin mature books”. They, however, reassured investors that the integration of Aberdeen Standard Investments was on track.

Analysts weigh in

Reuters quoted analysts at JP Morgan Cazenove as commenting that net flows for the company were ‘broadly consistent’ with their estimates, reiterating their ‘overweight’ rating on the stock.

The news comes after Numis recently turned bullish on the enlarged group, arguing that the successful initial public offering of the group’s part-owned Indian business marked good news for investors. 

As of 10:48 GMT, Friday, 15 December, Standard Life Plc share price is 417.00p.

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