Craig Bowen 
Standard Life has announced that it will invest £600 million in its U.K. life business over the next three years. This is the company’s first capital investment since 2011, when Suncorp acquired it. While the announcement may have Suncorp caught it, some question the value of such an investment during low-interest rates.
Standard Life Shares (SLI), an investment platform founded in 1812, has today announced that its share price has hit a new all-time high. However, it is unclear if this is a good time to invest in Standard Life Shares.
SLI is an investment platform that allows investors to buy shares in U.K. companies, mainly small and medium-sized enterprises. The forum was launched in 2013 and now manages approximately £2bn of assets.
The Standard Life Shares index has risen by 15% since the beginning of this year and is currently trading at 527.7p.
For investors in the U.S., the Standard & Poor’s 500 index (S&P 500) is an often-used yardstick for measuring the performance of the market as a whole. As of writing, the index is trading at 2,914 points, representing a gain of 20.5% over the last year and a 3.1% rise since its recent low on October 9th. But how much should a retail investor invest in this index or any other index that reflects the overall market’s performance?
What is Standard Life?
Standard Life is the U.K.’s oldest life insurance company. It offers various life insurance products, including term life, whole Life, income protection, and long-term care insurance.
Standard Life was founded in 1812 as the London Assurance Company. The company began underwriting life insurance policies in 1837 and opened its first branch in London in 1844.
Today, Standard Life is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index. The company employs over 11,000 staff and has a turnover of £11.8 billion.
Is Standard Life a good value buy?
It is difficult to say whether this is a good time to invest in Standard Life. This is a tough question to answer because the answer depends on how you define “a good time to invest.”
Standard Life’s share price has been rising steadily in recent months. On Friday, it grew from a low of £15.85 to a high of £16.50, giving it a market capitalization of £6.1 billion.
The share price is up 19%capitalizationear, compared to a 4.8% rise in the FTSE 100 index. According to the Financial Times, if you invested in Standard Life today, you would get a return of 3.7% per annum.
The company’s performance has been supported by a series of recent acquisitions that have helped the company’s performance range business of Prudential plc for £5.4 billion.
This acquisition, coupled with the company’s success in the U.S., has helped to boost the share price. However, it is worth noting that Standard Life has not yet released any profit figures between October 2015 and March 2016.
One key area that Standard Life has struggled with is its asset allocation. The company is 80% focused on U.K. equities, while 20% is invested in foreign equities.
The FTSE 100 index allocates 52% to U.K. equities and 48% to international companies. It is also heavily exposed to fixed-income assets, with 50% of its portfolio invested in bonds. The ratio of equities to bonds is 0.56. The FTSE 100 is 0.72.
Another area of concern is the company’s exposure to property. As the chart below shows, Standard Life is heavily invested in real estate, with an allocation of 22%.
However, this is a relatively small portion of the company’s total portfolio.
It is also worth noting that Standard Life has a very large exposure to the U.K. housing market, with a 52% allocation to residential mortgages.
How much risk are you taking?
It is well documented that people tend to buy more insurance when the fear of loss is high. And that is exactly what happened when Standard Life announced its dividend cut in May 2016.
The price of the Standard Life Shares (SLI) plunged by nearly 50% in less than a week. However, the price recovered and has since gone on to break an all-time high.
But does this mean that investing in SLI is a good idea?
The answer is it depends. The Standard Life Shares (SLI) price fell significantly during the dividend cut announcement, but the price recovered and has since broken an all-time high.
When it comes to investing in shares, there is an old saying that the higher the price, the higher the risk. That’s because you are paying more for each share you buy.
So, if you buy a share at $5, it is a safe bet that it will be worth at least $5.
If you buy a share at $100, you’re taking a big risk of losing all of your money.
Why invest now?
Standard Life Shares announced its share price has hit a new all-time high today. While it’s certainly good news, is this a good time to invest in Standard Life Shares?
A quick history lesson will give you a better idea of why Standard Life Shares might better explain Shares was founded in 1812 by William Gifford. It was one of the first companies to offer life insurance to the general public.
Since then, Standard Life has continued to grow. It is now one of the largest life insurance companies in the U.K. and has expanded into other sectors, such as pensions and investment management.
Today, Standard Life has a market cap of £15.1 billion and more than a million active investors.
Frequently questions about Life
Q: Are Standard Life Shares worth investing in?
A: Yes, they are. Standard Life Shares’ benefits include growth, dividends, safety, and liquidity. As an investor, it is important to understand what you are getting into before you invest.s’ benefit
Q: Is Standard Life Shares better than other dividend stocks?
A: Standard Life Shares is similar to a dividend ETF like the iShares Select Dividend ETF (DVY) because they pay monthly dividends. However, with Standard Life Shares, you also can grow your investment.
Q: Do you recommend Standard Life Shares?
A: I highly recommend them as an investment option for any investor with a diversified portfolio.
Q: How do Standard Life Shares compare to other mutual funds?
A: Standard Life Shares is similar to a dividend ETF like the iShares Select Dividend ETF.
Top Myths About Life
- Standard Life Shares are safe investments.
- Standard Life Shares are tax-free.
- Standard Life Shares provide an income stream.
- Standard Life Shares are for Life and guaranteed for Life.
Conclusion
Standard Life, a life insurance company, has been around for a long time. But after a recent split with Aviva, it decided to return to its roots and focus on providing quality insurance for U.K. residents.
This means they’re no longer focused on competing with the US-based insurance giants, and they’ve been able to refocus their product and service offering to offer something more tailored to the needs of U.K. customers.
But at the same time, they’ve also cut costs and raised their dividends. This means they can pass on higher payouts to shareholders than other major insurers, which means it’s a solid investment for long-term investors.
