Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Ignis £400m price tag 'inexpensive', analysts say

Ignis £400m price tag 'inexpensive', analysts say

Analysts have suggested the reported £400 million price tag that Standard Life could place on Ignis is 'inexpensive', considering it has assets under management of £68.7 billion.   

David McCann, analyst at Numis, described £400 million as a good price for Ignis. The analyst anticipates Standard Life will look to retain the assets and bring about cost savings if the deal goes ahead.

'On a headline basis it's relatively inexpensive, plus on top of that you have any synergies you can take out,' he said.

While the £2.5 billion Ignis Absolute Return Government Bond fund, co-managed by Stuart Thomson (pictured) has grown rapidly and performed well in recent time, McCann speculated that Standard Life would be looking to Ignis mainly to boost assets without having to take on a lot of infrastructure.

'As to why they would want it, there would be reasonable overlap in their front and back offices. There might be a particular bond fund they are interested in, but it would be mainly about cost,' he said.

Gordon Aitken, analyst at RBC Capital markets, described the takeover bid as a well-timed move from Standard Life.

'Their asset management business is really flying at the moment. It comes on the back of the annuities news from last week and Standard Life was one of the big winners of that because they have a big pensions side, but it is definitely good for them to diversify away from the pensions market,' he said.

'We think the price is a good one. In terms of assets under management, it's quite low,' he added.

RBC added that Ignis' suite of absolute return products could compliment Standard Life Investments' Gars range. 

At 15:55 Standard Life's share price was up 0.08% on the day, trading at 366.2 pence.


Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Picton: the UK property hotspots for rental income

Picton: the UK property hotspots for rental income

Picton Property Income CEO Michael Morris reveals how he is planning to ride the ‘ripple effect’ as UK economic growth spills out from the capital across the country.

Brewin's Foster talks financial crisis MkII with Allianz's Riddell

Brewin's Foster talks financial crisis MkII with Allianz's Riddell

This week Brewin Dolphin's head of research talks to Mike Riddell, fund manager at Allianz Global Investors, about the forces driving bonds markets in a tumultuous week for markets.

Play Henderson's Hermon: how to be defensive in smaller caps

Henderson's Hermon: how to be defensive in smaller caps

Hermon, who manages the Henderson Smaller Companies trust, talks about he will tackle a 'challenging' 2016.

Your Business: Cover Star Club

Profile: 'what we are doing at Mosaic is Darwinian'

Profile: 'what we are doing at Mosaic is Darwinian'

The changes in financial services over the last few years may leave some destitute warns Marco Sambucci of Mosaic Money Management

Wealth Manager on Twitter