This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Standard Life is trading at £3.68 and the stock is down 5.3% since the company announced a 13% decline in full-year profits to £751 million in February, despite it beating the estimate of £712 million. Funds under management were up 12% to £244.2 billion, and the dividend was increased by 8%.
Fund manager Aberdeen Asset Management came under pressure last week when its funds under management declined by 0.6%; one institutional client withdrew £4.2 billion in contracts. Its competitors, Jupiter Fund Management and Schroders, both recently reported an increase in funds under management.
Analysts are broadly bullish on Standard Life. Out of the 23 ratings, nine are buys, 10 are holds and four are sells.
The company is headquartered in Edinburgh but that could change if Scotland votes ‘yes’ to independence in September. IG is offering a binary bet on the outcome of the referendum, and our clients suggest there is a 20% chance of Scotland voting in favour of independence.
Standard Life’s share price is currently just below the 200-day moving average of £3.72, and the next support level down is £3.60. Positive results could push the price to £3.84, putting £4.06 in the crosshairs.