Aberdeen Asset reports net inflows for 2011

Date: Monday 28 Mar 2011

Fund manager Aberdeen Asset Management saw net inflows in the first two months of 2011, though assets under management are down by £7.1bn following the recent slump in shares prices.

Gross new business for the two months to 28 February came in at £6.9bn, giving a total of £19.1bn for the first five months of the financial year.

New inflows of £0.2bn kept net outflows for the period to £0.6bn compared with £3.6bn at the same time last year.

Most the new business went into equity pooled funds which Aberdeen said generate “significantly” higher revenue margins than the outflows. There is a consequent positive effect on recurring fee income. Meanwhile, the level of fixed income outflows slowed significantly.

But assets under management are down from £183.3bn at the end of 2010 to £176.2bn this time. There was a net inflow into equities of £1bn, but market movements slashed values by £5.1bn in the two months.

"While market conditions have been difficult since the beginning of the year, it is encouraging to see net inflows in the first two months,” chief executive Martin Gilbert said.

“With a healthy pipeline of new business supported by disciplined investment processes and continued strong performance, the outlook for organic growth of assets under management remains favourable."


LW

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