Aberdeen set to meet forecasts despite outflows

ABERDEEN Asset Management said yesterday it expects profits to come in towards the top end of the range of analyst forecasts in the current year, thanks to inflows into higher-margin products.

Aberdeen said clients pulled a net £1.2bn from its funds in July and August, reflecting volatile conditions especially in emerging economies where it is heavily invested, but this was partly offset by strong inflows into its higher-margin equities products as well as its emerging market debt and high yield bond funds.

The company said that thanks to the shift towards funds where it earns more in fee income, it expects underlying pretax profit for the current financial year to be towards the top end of the range of forecasts of £431m to £477m.

Aberdeen’s net outflows combined with negative investment performance to drag its assets under management down to £201.7bn at the end of August from £209.6bn at the end of June.