23rd Sep 2013 08:42
LONDON (Alliance News) - Aberdeen Asset Management PLC said its assets under management declined 3.8% over a two-month period, citing difficulties for the whole asset management sector, in its pre-close statement, published Monday.
Aberdeen said its assets under management were GBP201.7 billion on August 31, down from GBP209.6 billion on June 30, due to business outflows of GBP1.2 billion, a GBP3.7 billion loss on market movements and performance, and a GBP3 billion loss on unfavourable foreign exchange movements.
"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 the firm hand it keeps on costs, should help it to make an underlying GBP431 million to GBP477 million pretax profit for the full year ended September 30, which it said is towards the top of analysts' forecasts. Inflows in recent two months have been biased towards its higher-margin equities products, Aberdeen said.
Aberdeen made a GBP347.8 million underlying pretax profit for the previous year, to September 30, 2012, which was up 15% from the corresponding period in 2011. Underlying profit excludes amortisation and impairment. In the previous year, these charges totalled GBP78.1 million.
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.
Aberdeen shares are quoted Monday morning at 398.10 pence, up 10.80p, or 2.8%.
By Samuel Agini; [email protected]; @samuelagini
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