EM success drives Aberdeen inflows to £1bn in Q1

Strong inflows into Aberdeen Asset Management’s emerging market debt and equity ranges have helped produce a 3% rise in the group’s AUM in the three months to 31 December 2012.

Reporting results for the final three months of 2012 – the first quarter of Aberdeen’s 2012/13 financial year – the group said assets under management had risen by 3.3% to £193.4bn over the period.

That was bolstered by £1.1bn of net new business, compared with flat net inflows in the three months to 30 September 2012, following continued flows into its emerging market ranges.

However, Aberdeen cautioned that net inflows to EM equities continue at “a higher rate than we are comfortable with”, and reaffirmed its commitment to stemming flows in the area.

The group’s equity range saw net inflows of £3.1bn, up from £2.8bn in the previous quarter, while net outflows from fixed income fell from £1.8bn to £775m.

That reduced outflow was in part due to stronger demand for its EMD range: net inflows rose from £330m to £800m on the quarter.

In equities, net flows into global and Europe, Australasia & Far East (EAFE) equities dropped from £1.2bn to £300m, but Asia Pacific net flows doubled from £700m to £1.4bn and global emerging markets saw inflows rise from £1.3bn to £1.7bn.

“The trend we experienced in 2012 has continued, whereby inflows have been attracted into higher margin pooled funds investing in both equities and bonds whilst outflows have been mainly from lower margin segregated portfolios,” Aberdeen said.

“The effect on revenue is therefore positive, with the net flows for the quarter adding approximately £30 million of annualised fee income.”


This article was first published on Investment Week

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