Aberdeen rides out the choppy markets

Michael Bow
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ABERDEEN Asset Management beat expectations yesterday to record a £2.5bn increase in equity fund inflows during its latest quarter, despite a slowdown in overall new business.

The FTSE 100-listed company posted a one per cent fall in assets under management, down to £182.7bn.

But the drop off was eased by £2.5bn of new cash ploughed into its Asia Pacific, global emerging markets and global equity funds between March and June this year. The inflows beat analysts’ expectations of between £0.9bn and £1.3bn of new equity business.
Chief executive Martin Gilbert told City A.M.: “It’s a solid set of results because these are tough markets in asset management. It’s pretty good in that respect.

“It’s easy for people to forget in this banking crisis that in asset management, unless you do a good job for clients, it tends to be reflected in how well you do.”

Trading figures showed overall net new business flows for the quarter were £300m, down from £700m this time last year.

Aberdeen said it “welcomed” the slowdown of flows into its global emerging market funds.

“Our issue was we were getting too many assets in there and we couldn’t invest in quality stocks,” Gilbert said.

Analysts welcomed the figures, with JP Morgan Cazenove saying the firm remained its “favoured play in the sector”.

Numis analyst David McCann added: “The update revealed more of the same good news that has become almost customary from Aberdeen recently. Aberdeen remains a top pick.”