|Bid||310.30 x 0|
|Ask||310.40 x 0|
|Day's range||308.80 - 321.20|
|52-week range||170.30 - 333.40|
|Beta (5Y monthly)||1.19|
|PE ratio (TTM)||N/A|
|Earnings date||09 Mar 2021|
|Forward dividend & yield||0.22 (6.61%)|
|Ex-dividend date||20 Aug 2020|
|1y target est||380.07|
While not a mind-blowing move, it is good to see that the Standard Life Aberdeen plc ( LON:SLA ) share price has gained...
(Bloomberg Opinion) -- Webster’s dictionary defines bipolarity as “characterized by two directly opposing opinions, natures, etc.” Three years after the mega-merger that created Standard Life Aberdeen Plc, it’s still trying to cure itself of just such an affliction. New chief executive officer, Stephen Bird, needs to get the firm pulling in a common direction.Since taking over at the start of September, Bird worked quickly to demarcate the U.K. asset management company’s businesses into four areas — global asset management, fund adviser platforms, strategic partnerships, and retail savings and wealth. Each division has its own leadership and, importantly, growth targets. With the relentless industrywide pressure on fees and income showing no signs of abating, a shrinking asset manager can rapidly become an unviable one.Next up on Bird’s to-do list: sorting out the marketing. The company currently has six brands, each with its own website. That’s arguably five brands too many, diluting the prestige that should flow from almost two centuries as a steward of other people’s money. The confusing stable includes both the Standard Life Aberdeen and Aberdeen Standard Investments monikers, as well as the utterly unmemorable 1825 trademark referencing the firm’s year of establishment. The more than 600 individual funds available could also benefit from judicious pruning.Although the company was a frontrunner in identifying the importance of scale, it’s fumbled its execution of the merger. Combining two cultures was never going to be easy, but it was made harder by the initial mistake of installing co-chief executive officers, Standard Life’s Keith Skeoch and Aberdeen’s Martin Gilbert. That produced what one insider called a “Noah’s Ark” approach to decision making that tried to keep both camps happy instead of following business logic.That blurred vision and hurt morale. A survey just after the merger showed only about half of the staff felt positive about going to work, with a fifth feeling negative. Returns for investors suffered. In 2018, about half of funds under management lagged their relevant benchmarks measured over three years. In 2019, 40% of them still underperformed.Customers have pulled money out of the firm every year since 2016, with assets dropping to 512 billion pounds ($695 billion) by the middle of this year, well short of the $1 trillion club the merger was designed to qualify for. Chairman Douglas Flint cleaned house after arriving in early 2019. Gilbert quickly relinquished his seat, and in June this year Skeoch announced his departure.Bird, a veteran of more than two decades at Citigroup Inc., seems to have the right background to succeed. A Scot, he built the U.S. bank’s wealth business in Asia and headed its consumer banking unit. Since he joined Standard Life Aberdeen, investors have driven the share price up by more than 25%, outpacing gains at rival firms including Schroders Plc, Amundi SA and DWS Group GmbH.His experience will be valuable. With individuals taking more responsibility for building their own old-age savings, fund management firms are in a race to build the best mousetrap to win that business by selling products either directly to retail clients or via their financial advisers.But it’s an increasingly crowded marketplace. Schroders displaced Standard Life as the U.K.’s biggest standalone investment company by assets earlier this year, and it’s teamed up with Lloyds Banking Group Plc to target well-heeled Brits. And U.S. behemoth Vanguard Group Inc. is moving Brent Beardsley, its head of strategy, to London next year to head its direct-to-consumer business as it scents opportunity in the growing U.K. pensions market.More than half of the U.K.’s 27,000 financial advisers use Standard Life’s Wrap or Elevate investment platforms to service their clients, giving it leverage in that market. Aberdeen Standard Capital manages about 8 billion pounds directly for affluent customers and the company’s 1825 service offers investment advice. Now it needs to target the mass market through better branding and marketing as well as improved technology to make it easier for individuals to keep track of investments and to entice them with new products.An expansion in the fast-growing passive products market is overdue. Skeoch had zero interest in growing the low-margin business that relies so much on economies of scale. But with demand for index trackers heading in one direction, Bird has acknowledged the firm needs to offer a full suite of services. Exchange-traded funds, including actively managed ETFs, are liquid, transparent and cost-effective wrappers to deliver new investment themes to customers, Bird says.Both corporate morale and investment performance were improving before Bird took charge. Almost three-quarters of employees said in July they were proud to work for the company, with only 7% saying they felt negative. The portfolio managers have got their mojo back. At the half-year point, two-thirds of funds managed were beating their indexes.But at about 6.2 billion pounds, Standard Life Aberdeen’s current market capitalization is half what it was at the time of the merger. Bird has a long road ahead if he’s to restore all of that shareholder value.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Mark Gilbert is a Bloomberg Opinion columnist covering asset management. He previously was the London bureau chief for Bloomberg News. He is also the author of "Complicit: How Greed and Collusion Made the Credit Crisis Unstoppable."For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg Opinion) -- Mary Erdoes, who runs asset and wealth management at JPMorgan Chase & Co., reckons fund managers are one of the few groups of finance professionals who’ve benefited from the pandemic, given they’ve had more “thinking time” while forced to work from home. “Of all sectors that I think will come back to work in the office fastest, I would put asset management at the end of the list,” she said earlier this month.Many portfolio managers would beg to differ.The lack of interaction with colleagues focused on different asset classes, the increased difficulty of getting trades done, and the risk of junior staffers missing out on day-to-day instruction all make investment professionals as keen as others to get back to their office desks.“I want to go back,” says Chris Bowie, who helps oversee more than $25 billion at TwentyFour Asset Management in London. “I think the lack of a commute does allow more time to read and think, but you lose the over-the-desk ad hoc interaction, which, in my experience, often leads to bigger discussions on themes and then asset allocation.”That interplay with teams across asset classes is a valuable source of investment insight that’s difficult to replicate, says Jamie Stuttard, head of global macro fixed income at Robeco Group, which manages more than $180 billion. Although lockdown has in some cases improved connections within teams, the cross-pollination of ideas has taken a big hit. “The casual ‘coffee machine’ interaction is gone,” he says.And for a global portfolio manager, nothing beats boots on the ground when it comes to developing local acumen. Yes, it’s a boon to be able to communicate with overseas clients via Zoom calls rather than getting on a plane, but fund managers bemoan missing out on the color gained by visiting a foreign investment destination.Then there’s the issue of trade execution. While money managers make the asset allocation decisions, their traders are responsible for the actual buying and selling of securities. Not only does remote working reduce interaction between the two groups, but the need for tighter risk controls when working remotely increases the friction and cost of changing portfolios, too.One hedge fund owner told me he was worried that his younger researchers were reverting to university behavior by becoming more and more nocturnal, based on the times of emails he was seeing. The risk was that late nights would produce a lack of focus during trading hours, when he needs his market analysts to be at the top of their game.Bowie at TwentyFour is also concerned about the impact lockdown is having on younger staff. “We have tried to boost morale by giving everyone unlimited holidays, for example, but the on-desk training angle is worse for the junior members. They don't get the day-to-day, over-the-shoulder learning that we all benefited from,” he says.Stephen Bird, chief executive officer of Standard Life Aberdeen Plc, agrees. “There are many employees that absolutely need and want to come in and collaborate, innovate and get out of the house,” he told my Bloomberg News colleague Suzy Waite earlier this month. “Think of the next generation of talent. Think about how we all learned.”Now, Erdoes at JPMorgan might have been defending her staff from the bank’s boss, Jamie Dimon, who has argued for the need to get workers back into the office as soon as possible. But it’s clear that even fund managers are missing the osmosis of working in an office, even if almost nobody misses that daily commute.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Mark Gilbert is a Bloomberg Opinion columnist covering asset management. He previously was the London bureau chief for Bloomberg News. He is also the author of "Complicit: How Greed and Collusion Made the Credit Crisis Unstoppable."For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.