Aberdeen Asset boosted by new business wins

Date: Tuesday 30 Nov 2010

An increase in net new business helped fund manager Aberdeen Asset chalk up a meaty profit rise last year as it took 'full advantage' of the stock market revival.

Underlying profits in the year to September rose to £210 from £85.1m, on revenues of £639m against £422m. Pre-tax profits were £125.6m against £10.1m.

Funds under management rose to £178.7bn (2009: £146.2bn), after net inflows of £2.6bn over the year compared with a £10.7bn outflow last time. Gross new funds were £46.6bn, up from £19.1bn.

Aberdeen says this record level of new business wins was primarily driven by strong investor demand for its global emerging market and global equities products. A further £1.9bn of mandates were awarded but not funded at the year end.

The firm added it expects to move into a net cash position shortly. The dividend for the year rises to 7p from 6.9p.

"Looking ahead, while we are conscious of the risk of further market volatility, we plan to grow further the group's revenues and profits by remaining focussed on the management and distribution of the wide range of investment activity that we have developed over the course of the last five years," chairman Roger Cornick said.

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