ABERDEEN Asset Management saw assets under management dip over the third quarter of its financial year due to weakness of the global markets, though investors found reason to cheer in a robust flow of new business into the firm.
Aberdeen said assets under management stood at £164.7bn at the end of June, 3.6 per cent lower than at the end of March, blaming the decline in equity markets and unfavourable exchange rates for the fall.
But the group’s shares bounced 1.66 per cent to 134.9p on the London Stock Exchange yesterday as appetite for the stock was whetted by strong equity inflows and lower outflows in fixed income.
Aberdeen raked in a total of £11.2bn in gross new business wins for the third quarter, compared to just £3.4bn in the same quarter last year.
Slowing redemptions meant that net new business for the quarter was positive at £0.3bn, against net outflows of £2.2bn in the third quarter of 2009. The firm expects to pocket £10m of extra annualised fee income from the net inflows.
Analysts said the update was encouraging, particularly in light of the ongoing turbulence on the markets.
Sarah Ing at Singer Capital Markets said: “Aberdeen is showing good organic revenue growth and flows will have outperformed the wider sector in equities given the firm’s global equities expertise.”
Aberdeen said it is on course to eliminate its short-term bank debt by the end of the financial year, adding that it is confident of delivering further organic growth despite the risk of further market volatility in the near term.