1st Apr 2014 07:52
LONDON (Alliance News) - Aberdeen Asset Management PLC Tuesday reported GBP3.9 billion in net outflows across its asset classes between the end of 2013 and the end of February, but it estimated that net outflows slowed to an estimated GBP200.0 million in March.
Aberdeen shares were Tuesday quoted at 416.00 pence, up 6.6%.
The FTSE 100 asset manager reported GBP186.5 billion in assets under management at the end of February, a decline from the GBP193.6 billion under its care at the end of 2013, with Aberdeen pinning the blame on continuing weakness in emerging markets. On top of the overall net outflow, Aberdeen said market movements and performance detracted GBP1.5 billion from assets under management, while foreign exchange movements took away another GBP1.7 billion.
Aberdeen also reported growth in its pipeline of new business, with mandates totalling about GBP3.6 billion awarded but not funded at the end of February. The asset manager said the pipeline is "well spread" across its emerging markets, Japanese and global equities, property, and multi asset capabilities, with about GBP1.2 billion in inflows over March.
The asset manager also said it has identified and implemented "significant additional costs savings."
Chief Executive Martin Gilbert said inflows to emerging market debt, high yield bonds and property partly offset the net outflows from Aberdeen's Asian and emerging market equity products.
"Conditions in emerging markets remain subdued, and we have therefore identified and are implementing some cost savings, over and above the synergies we expect from the Scottish Widows Investment Partnership transaction," Gilbert said in a statement.
Aberdeen said its acquisition of SWIP has been completed. It is paying GBP550 million in total to Lloyds Banking Group PLC for the business.
Aberdeen said 125.85 million shares will be issued to Lloyds, as well as a GBP39.4 million deferred top-up payment in 12 months' time.
A further 5.95 million shares will be issued when the acquisition of SWIP's infrastructure fund management business is completed.
The deal, which saw Aberdeen and Lloyds declare a strategic partnership, is expected to be materially enhancing to underlying earnings per share in the first full financial year after completion.
By Samuel Agini; [email protected]; @samuelagini
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