3rd Feb 2015 07:39
LONDON (Alliance News) - Aberdeen Asset Management PLC Tuesday said assets under management dropped slightly in the first quarter of its financial year as weak investor sentiment hit inflows in December, although it said flows returned to more normal levels in January.
However, it's also expecting demand for investment products to remain volatile due to continued volatility in global markets.
The asset manager said assets under management stood at GBP323.3 billion at the end of December, down from GBP324.4 billion at the end of September, after it booked gross inflows if GBP11.3 billion for the fiscal first quarter as a whole but outflows also increased as the emerging market backdrop remained tough.
"The recent quarter can be considered in two parts. October and November were encouraging with overall flows in line with the previous quarter and equity flows positive. However, December was a reminder that investor sentiment remains fragile," Chief Executive Martin Gilbert said.
"As this quarter has demonstrated, investor sentiment remains fragile and we expect global markets and demand for investment products to continue to be volatile. Despite the headline net outflow, we are winning new business at good fee margins and we remain disciplined in managing costs," the company said in its outlook statement.
Aberdeen said it is continuing to be disciplined about managing costs and margins, and it reiterated that the cost synergies from the integration of Scottish Widows Investment Partnership are likely to be ahead of its initial expectations.
The SWIP integration is on track, with the more complex elements of the migration expected to complete by end of 2015, the company said.
"The broader offering acquired from SWIP means that the overall business is better balanced and the enlarged business remains well capitalised and cash generative," it said.
By Steve McGrath; [email protected]; @stevemcgrath1
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
ADN.L