Standard Life shares on the rise

Established in 1825, Standard Life has been one of the leading pension and investment providers with over ten million customers worldwide; its strategic planning and several changes to its overall management, such as the demutualisation of the company in 2006, have given Standard Life shares a boost over recent years.

What are Standard Life Shares?

Standard Life is a pensions and investments company with 1.5 million individual shareholders. It's the leading pensions provider in the UK, allowing customers to own parts of Standard Life shares as part of their pension; when the time comes to live off your original investment, your return should be either the same as what you put in or exceeding that amount.

However, Standard Life can also be used for a number of investments. Many shareholders will hold onto their shares and then sell them on when they believe they're worth more money and, with the success of the company of the past few years, this seems to be a good, working idea for most shareholders.

Demutualisation of Standard Life

Since 2000, a number of changes in the economy and stock market occured, causing Standard Life to change some of its policies and approach. However, due to good strategic planning and reaction to critical events, Standard Life managed to stay a float in the financial crisis by floating the company in 2006 to raise more money to guarantee its success and meet new FSA insolvency regulations.

The demutualisation of Standard Life meant shares and share holders would receive a windfall of around £2000 - £3000 in some cases. In general, it would also mean the company is more secure; it is less likely to fall into insolvency, thus losing all of its policyholders finances.

Other Factors of Success

Standard Life shares are soaring in 2013 for many reasons. The company historically has never outsourced financial advisors for its customers; instead, the company uses its own advisors to save on outsourcing costs, providing another pit of capital for Standard Life. They've also developed a technological platform and training platform reading for the new extra of financial advisors and graduates that have been predicted.

However, like any other share holder company or investment, Standard Life's success is dependant on the stock market. Its recent demutualisation and strategic planning make it very resistent to insolvency, but Standard Life has always heavily invested its money to offer high returns to its customers - should another stock market crach occur Standard Life, like many other investment companies, might hit some rocky times.

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