Tuesday preview: Standard Life reports first half interims

Investment giant Standard Life reports its first half interims on Tuesday with analysts pencilling in flat operating profit.

UBS expects operating profit of £294m, up 1% compared to the same period a year ago, driven by the Standard Life Investments business.

The bank said investor focus will likely be on flow from Standard Life’s Global Absolute Return Strategies (GARS) fund and any updates on its position on Solvency II, a European Union Directive on insurance regulation.

“Standard Life’s share price is strongly correlated with GARS performance and sustainability of flows is a key debate,” the bank said.

“Flows appear to have turned negative in Q2, driven mainly by non-UK outflows (US and Europe). We expect this to be a drag on flow guidance of £300-400m per quarter as the UK 'leave' vote uncertainties persist.”

UK flows are, however, expected to be more resilient due to underlying demand for multi-asset via pension consultants.

UBS forecasts total assets under management from continuing operations at the end of the second quarter to be £314bn, largely flat since the last update, with total inflows of £0.9bn in the first half. The bank predicts a 6% increase in the interim dividend to 6.4p.

Tuesday 09 August

INTERIMS
Legal & General Group, Quarto Group Inc., Spirax-Sarco Engineering, Standard Life, Synthomer

QUARTERLY EX-DIVIDEND DATE
IBM Corp.

INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Balance of Trade (GER) (07:00)
Wholesales Inventories (US) (15:00)

Q2
Quarto Group Inc.

Q3
GW Pharmaceuticals

FINALS
Hargreaves Services

AGMS
Downing One VCT

UK ECONOMIC ANNOUNCEMENTS
BRC Sales Monitor (00:01)