23rd Sep 2013 13:58
LONDON (Alliance News) - Aberdeen Asset Management PLC Monday said it now expects its full-year profit, excluding impairment charges, to be at the top end of analysts' forecasts as it cut costs and clients bought higher-margin products.
The asset manager, which is focused on emerging market funds, saw a further net outflow during July and August as markets remained volatile, but the outflow slowed significantly and analysts said its shares rose on relief that the flow hadn't been worse.
Aberdeen shares are quoted Monday at 389.2 pence, up 1.90p, or 0.5%, having previously been the biggest riser on the FTSE 100.
Its assets under management were down 3.8% over the two-month period, to GBP201.7 billion on August 31, from GBP209.6 billion on June 30. Net new business outflows were GBP1.2 billion, but that compared with an outflow of GBP3.6 billion in the three months to June 30.
Aberdeen attracted gross new business totalling GBP7 billion, compared with GBP6.1 billion, bringing the total for the 11 months to August 31 to GBP41.3 billion, up from GBP33.1 billion in the same period last year.
"We continue to see considerable investor appetite for our non-equity products, for example the GBP130 million of commitments recently received for a new property fund," Chief Executive Martin Gilbert said in a statement.
Aberdeen said its outlook for the markets is generally cautious, but said its long-term investment strategy coupled with cost cutting will help it make a pretax profit excluding impairment charges and amortization towards the top end of the GBP431 million to GBP477 million range that analysts are currently predicting.
Aberdeen made a GBP347.8 million underlying pretax profit in its 2012 financial year, up 15% from 2011.
Aberdeen said that the situation remains fragile because structural problems have not yet been resolved, though it said there are recovery signs in the US and in Europe.
Aberdeen Asset Management was fined GBP7.2 million on September 3 after UK regulator the Financial Conduct Authority said it had failed to adequately protect client money in third-party banks over a three-year period.
"As we had expected, net flows were not a disaster, despite a difficult environment in the period for emerging market/Asia-focused managers," analysts at Numis said in a note to clients. The brokerage is keeping Aberdeen as one of its top picks in the sector, citing an attractive valuation and growth prospects.
By Samuel Agini; [email protected]; @samuelagini
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