Resilient Aberdeen AM adds new business in Q2

Aberdeen Asset Management suffered a drop of £2bn in assets under management, saying that in part this was due to its measures to stem inflows into its emerging markets funds.

Aberdeen added gross new business totalling £8.8bn in the quarter, compared to £10.9bn for the same quarter last year, bringing the total for the nine-month period to 30 June 2012 to £27.0bn. Last year’s overall figure is £33.9bn.

Gross inflows for the quarter are about £1.6bn lower than for the previous quarter, though this is due to Aberdeen taking measures to stem the flow of assets into their emerging markets funds. As Aberdeen said: “We have seen a welcome slowing of flows into our global emerging market equity funds.”

The funds in the EM range include the $9.8bn Aberdeen Global Emerging Markets Equity fund and the £2.7bn Aberdeen Emerging Markets fund, both run by Devan Kaloo and his team.

Assets under management at 30 June 2012 totalled £182.7bn, a 1% decrease on 31 March 2012. Of these assets, £92bn are in equities, £39.1bn in fixed income, £24.8bn in Aberdeen Solutions and £19.5bn in property.

Martin Gilbert, chief executive of Aberdeen Asset Management, said: “This has been another successful quarter for Aberdeen, despite the global economic uncertainties and subdued conditions in the world’s financial markets. We continue to concentrate on delivering superior investment performance and service for our clients, which enables us to grow organically whilst maintaining a strong balance sheet.”

Net new business inflows for the quarter totalled £0.3 billion (2011: £0.7 billion). Aberdeen said: “Healthy net inflows to our higher margin equity products [were] offset by net outflows from our lower margin capabilities. Overall, the impact of the quarter’s net flows will add about £15m of annualised fee income.”

Net equity inflows were fairly evenly distributed across the three key capabilities, Asia Pacific, GEM and global equities. Within fixed income, Aberdeen said, “our emerging market debt funds continue to attract steady net inflows and our property team continued its recent fundraising momentum by achieving €105m of equity commitments to a Swedish residential property fund. An analysis of the new business figures for the nine months to 30 June 2012 is provided at the end of this statement.”

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