Funds inflow continues at Aberdeen Asset

Date: Monday 25 Jul 2011

Assets under management (AuM) at asset manager Aberdeen Asset Management edged up 2.5% in the second quarter of 2011, with flows into higher margin products more than offsetting redemptions, which have slowed.

AuM at the end of June stood at £185.8bn, compared to £181.2bn at the end of March. Net new business inflows for the quarter accounted for £0.9bn of the improvement, with the remainder down to market appreciation performance and exchange rate fluctuations. Net new business inflows in the corresponding quarter of 2010 totalled £0.3bn.

In the nine months to the end of June, net flows were flat, indicating a pick-up after a soft showing in the October - December 2010 showing. In the corresponding period of the previous year, the 9-months net inflows totalled £0.4bn.

Gross new business wins for the quarter totalled £10.9bn, compared to £11.2bn for the same quarter last year, bringing the total for the nine month period to 30 June 2011 to £33.9bn (2010: £36.3bn). A further £1.5bn of new mandates had been awarded at 30 June 2011 but not funded at that date.

Income, margins and cash flow remain strong, the company said.

Markets are expected to remain "somewhat volatile" in the near term but the company is confident it can deliver further organic growth. "Market volatility also creates opportunities particularly for long-term investors with a fundamental approach like Aberdeen," noted Aberdeen's chief executive, Martin Gilbert.

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