Aberdeen Asset Management leads FTSE on strong new business numbers

Aberdeen Asset Management is up over 2.4 per cent in early trading on its interim management statement, released this morning (release).

The group saw gross new business of £7bn in the last two months, while assets under management continued their fall.

While Aberdeen managed £212.3bn of assets on 31 March, that dropped to £209.6bn by 30 Jun and now stands at £201.7bn on the 31 August.

Mike van Dulken, head of research at Accendo Markets, commented this morning:

Aberdeen Asset Management (ADN) is top of the FTSE100 this morning with traders reacting favourably to the interim management statement to end-August (11-months). While the report highlights a 3.8% fall in assets under management, investors are nonetheless happy to hear that gross new business rose in the last two months, net outflows improved on the prior quarter and updated guidance suggests full-year pre-tax profits (to end-Sept) should come in at the top-end of consensus.

A taper no-show likely helps slow the flow of money from emerging market funds which had hurt since end-May and led to a volatile summer. The rally by shares from early September has resulted in a break above August highs 395p, opening up a possible move to the next key level - July highs 422p.