17th Jan 2008 07:02
Aberdeen Asset Management PLC17 January 2008 ABERDEEN ASSET MANAGEMENT PLC INTERIM MANAGEMENT STATEMENT - 3 MONTHS TO 31 DECEMBER 2007 Aberdeen has continued to enjoy healthy levels of new business wins in thequarter to 31 December 2007, despite continued volatility in global equity andbond markets. Including the effects of the acquisition of the US mutual fundbusiness from Nationwide Financial Services, which was completed in October,assets under management ("AUM") ended the quarter at a record level of £102.9billion. Gross new business wins for the quarter totalled £5.2 billion, compared to £3.7billion at the equivalent stage last year, with a further £2.7 billion of newmandates awarded to the Group at 31 December, but not funded at that date.Assets withdrawn by clients in the quarter, principally due to marketconditions, totalled £5.1 billion (against £3.0 billion for the quarter to 31December 2006), some £850 million of which can be attributed to two clientswithdrawing a portion of their assets as they sought to reallocate their equityportfolios. Analysis of these numbers is provided in the following table. Funded Yet to fund Total £m £m £mFixed income: Gross inflows 2,807 911 3,718Outflows (1,844) - (1,844) ----- --- -----Net inflows 963 911 1,874 ----- --- -----Equities: Gross inflows 1,321 804 2,125Outflows (2,885) - (2,885) ----- --- -----Net outflows (1,564) 804 (760) ----- --- -----Property: Gross inflows 859 986 1,845Outflows (175) - (175) --- --- -----Net inflows 684 986 1,670 --- --- -----Multi asset: Gross inflows 265 - 265Outflows (206) - (206) --- --- ---Net inflows 59 - 59 --- --- ---Group total: Gross inflows 5,252 2,701 7,953Outflows (5,110) - (5,110) ----- ----- -----Net inflows 142 2,701 2,843 ----- ----- ----- The first two weeks of January have seen inflows of £506 million, of which £206million is included in the table above under "yet to fund" and £300 million isan equity mandate awarded and funded in January. This latter award represents areallocation decision by a client who had withdrawn assets from a differentequity discipline during the quarter to 31 December. Notwithstanding tighteningmarket conditions, the search activity remains encouraging. The acquisition of certain US equity sub-advisory mandates from NationwideFinancial Services was completed on 1 October 2007 and integration of thisbusiness is proceeding according to plan. These funds contributed a net outflowof £120 million in the quarter to 31 December 2007, included within the figuresreported above. The process of obtaining the necessary regulatory consents toour acquisition of the DEGI property fund management business, announced inDecember, is ongoing and we expect this transaction to complete by April 2008. The balance sheet has been strengthened further by the conversion to ordinaryshares of £23.6 million, in nominal value, of the Group's 4.5% Convertible bonds 2010 and operating cashflow remains strongly positive. We expect market conditions to remain difficult in the coming months but, giventhe diversity of our equity, fixed income and property products and theincreasing global reach of our distribution we remain confident of continuingto add net new business over the remainder of the financial year. Martin Gilbert, Chief Executive of Aberdeen, commented: "In the context of an increasingly volatile market environment, we arecontinuing to win new business across all asset classes resulting in recordassets under management. "Aberdeen is well positioned to deal with these market conditions as a resultof our broad range of products in equities, fixed income and property as wellas our fundamental and transparent processes and our strong balance sheet." ASSETS UNDER MANAGEMENT AT 31 DECEMBER 2007 31 Dec 07 30 Sep 07 £m £mBy type of mandate: Institutional mandates 76,773 70,562Open end funds (excluding property funds) 14,755 14,138Closed end funds (excluding property funds) 6,207 6,208Property funds 5,140 4,404 ------- ------ 102,875 95,312 ------- ------By asset class: Fixed income 48,401 44,564Equities 36,851 34,230Property 10,822 9,354Multi asset 6,801 7,164 ------- ------ 102,875 95,312 ------- ------ For further information Maitland 020 7379 5151Neil BennettCharlotte Walsh This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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