27th Jul 2009 07:03
ABERDEEN ASSET MANAGEMENT PLC
INTERIM MANAGEMENT STATEMENT - 9 MONTHS TO 30 JUNE 2009
Highlights
Assets under management £129.2 billion
£3.4 billion of new business won in the quarter; £8.8 billion for the nine months to 30 June 09
Credit Suisse acquisition completed and migration of portfolios on track
Balance sheet strengthened
Martin Gilbert, Chief Executive of Aberdeen, commented:
"We have made good progress across several fronts this year. We have a strong new business pipeline in equities, fixed income and property, we have taken action to manage our cost base, have expanded our product offering and have consolidated our position as a leading global asset manager.
While the economic environment remains challenging, I am confident that our strengthened market position leaves us well placed to benefit from the upturn."
Despite the recent recovery witnessed in global markets, the operating environment for asset managers remains challenging. Notwithstanding this, the Group has continued to win new business globally and has a healthy new business pipeline which is diversified across equities, fixed income and property. The Group has been committed to managing its cost base during the downturn and the impact of these cost savings will come through at the end of 2009. During the last quarter the Group completed both the first and final closings of the acquisition of certain businesses from Credit Suisse which confirms Aberdeen's position as a leading global asset manager, adding greater scale, strengthening our investment offering in certain product areas and introducing a long term quality shareholder with aligned aims.
Taking account of the £35.3 billion added by the Credit Suisse acquisition, for which the final closing was on 30 June, assets under management ("AuM") grew to £129.2 (31 March 2009: £96.3 billion). The principal changes in AuM during the quarter are shown in the following table.
|
Fund management £bn |
Property £bn |
Total £bn |
|
|
AuM at 31 March 2009 |
73.1 |
23.2 |
96.3 |
|
Net new business flows for the quarter |
(2.1) |
(0.1) |
(2.2) |
|
Corporate acquisitions |
35.0 |
0.3 |
35.3 |
|
Market appreciation and performance |
9.1 |
(0.1) |
9.0 |
|
Exchange rate movements |
(7.3) |
(1.9) |
(9.2) |
|
AuM at 30 June 2009 |
107.8 |
21.4 |
129.2 |
Gross new business wins for the quarter totalled £3.4 billion, compared to £5.6 billion for the same quarter last year, bringing the total for the nine month period to 30 June 2009 to £8.8 billion (2008: £17.3 billion). A further £3.5 billion of new mandates had been awarded to the Group at 30 June 2009 but not funded at that date. Redemptions have slowed somewhat in the latest quarter, particularly on fixed income mandates - assets withdrawn by clients in the quarter totalled £5.6 billion (2008: £4.7 billion), bringing the total for the nine month period to 30 June 2009 to £19.4 billion (2008: £15.1 billion). An analysis of the new business figures for the nine months to 30 June 2009 is provided at the end of this statement.
Investment performance remains strong across a number of key equity disciplines, especially global equities, global emerging markets, Asia Pacific and US equities, each of which have continued to deliver numbers consistently ahead of the respective benchmarks. As credit markets have recovered, this has led to a strong improvement in underlying fixed income performance and our fixed income strategies are all outperforming their respective benchmarks for 2009 to date. This is encouraging and has been reflected in the stabilisation of outflows during the quarter.
Within property, there has been a marked slow down in transaction fees which is likely to impact on the division's operating margin, although flows continue to be positive and we have seen success in winning new mandates with the highlight being a €1.4 billion mandate from a Swedish client which will fund in January 2010.
Since July 2008, the Group has had a tight focus on costs and to date has announced net cost savings of £80 million of which £55 million is expected to benefit the current financial year with the full annualised benefit impacting 2010. Outside of these announced cost savings, the Credit Suisse acquisition has allowed significant cost efficiencies and synergies to be delivered by utilising the Group's existing resources and back office model and the Group continues to be attentive to its cost base.
In distribution, we continue to make progress on a number of fronts. Our recognised investment process and strong performance in global and emerging market equities continues to attract strong interest and this has been augmented by specific marketing campaigns and client events undertaken around the world. We are also receiving favourable interest as we introduce our US equity capability to clients. Within fixed income, our emerging market debt product is gaining momentum. From a geographic perspective, we are building traction in a number of markets, especially Canada where we are seeing significant success. The Credit Suisse acquisition expands our European operations in London, Paris and Zurich, and adds new offices in Budapest, Geneva and Milan. Elsewhere, it adds scale to the Group's presence in the Australian wholesale market, provides access to new Japanese retail fund clients and broadens the Group's US open-end and closed-end fund offerings.
Following the quarter end, the Group announced the sale of the management contracts for two OEIC fund umbrellas containing 10 open-end funds to Premier Asset Management Group Limited for a cash consideration of £23 million. Completion of the transaction is subject to regulatory and shareholder consent. These former Credit Suisse funds have total assets of some £858 million (as at 8 July 2009).
The Group's increased scale offers diversification and an enhanced product offering through the addition of money market funds. The balance sheet has been strengthened by the Credit Suisse acquisition and the good investment performance across our asset classes continues to provide opportunities for further new business wins.
For further information please contact:
Aberdeen Asset Management PLC + 44 (0) 20 7463 6000
Martin Gilbert
Bill Rattray
Maitland + 44 (0) 20 7379 5151
Neil Bennett
ASSETS UNDER MANAGEMENT AT 30 JUNE 2009
|
30 Jun 09 £m |
31 Mar 09 £m |
|
|
Fixed income |
48,627 |
38,842 |
|
Equities |
40,300 |
28,640 |
|
Property |
21,360 |
23,207 |
|
Money market |
13,408 |
- |
|
Multi asset |
5,479 |
5,572 |
|
129,174 |
96,261 |
OVERALL NEW BUSINESS FLOWS FOR 9 MONTHS TO 30 JUNE 2009
|
Qtr to 31 Dec 08 £m |
Qtr to 31 Mar 09 £m |
6 mths to 30 Jun 09 £m |
Qtr to 30 Jun 09 £m |
9 mths to 30 Jun 09 £m |
|
|
Gross inflows: |
|||||
|
Fixed income |
673 |
918 |
1,591 |
775 |
2,366 |
|
Equities |
1,288 |
1,386 |
2,674 |
2,582 |
5,257 |
|
Property |
586 |
424 |
1,011 |
2 |
1,013 |
|
Multi asset |
53 |
38 |
91 |
41 |
132 |
|
2,600 |
2,767 |
5,366 |
3,401 |
8,767 |
|
|
Outflows: |
|||||
|
Fixed income |
5,418 |
5,148 |
10,566 |
3,488 |
14,054 |
|
Equities |
1,247 |
1,141 |
2,388 |
1,004 |
3,392 |
|
Property |
122 |
560 |
682 |
142 |
824 |
|
Multi asset |
159 |
88 |
247 |
928 |
1,176 |
|
6,945 |
6,938 |
13,883 |
5,563 |
19,446 |
|
|
Net flows: |
|||||
|
Fixed income |
(4,745) |
(4,231) |
(8,976) |
(2,713) |
(11,688) |
|
Equities |
42 |
245 |
287 |
1,578 |
1,865 |
|
Property |
464 |
(136) |
329 |
(140) |
189 |
|
Multi asset |
(106) |
(50) |
(156) |
(887) |
(1,043) |
|
(4,346) |
(4,171) |
(8,516) |
(2,162) |
(10,679) |
NEW BUSINESS FLOWS FOR 9 MONTHS TO 30 JUNE 2009 - FIXED INCOME
|
Qtr to 31 Dec 08 £m |
Qtr to 31 Mar 09 £m |
6 mths to 30 Jun 09 £m |
Qtr to 30 Jun 09 £m |
9 mths to 30 Jun 09 £m |
|
|
Gross inflows: |
|||||
|
Asia Pacific |
107 |
215 |
322 |
141 |
464 |
|
Emerging markets |
23 |
390 |
412 |
214 |
626 |
|
Europe |
106 |
22 |
128 |
15 |
143 |
|
Global |
15 |
14 |
29 |
227 |
256 |
|
High yield |
25 |
27 |
52 |
41 |
93 |
|
UK |
168 |
80 |
248 |
81 |
329 |
|
US |
229 |
170 |
399 |
57 |
456 |
|
673 |
918 |
1,591 |
775 |
2,366 |
|
|
Outflows: |
|||||
|
Asia Pacific |
798 |
229 |
1,027 |
253 |
1,280 |
|
Emerging markets |
93 |
700 |
793 |
15 |
808 |
|
Europe |
549 |
598 |
1,147 |
148 |
1,295 |
|
Global |
856 |
677 |
1,533 |
376 |
1,909 |
|
High yield |
37 |
26 |
64 |
24 |
88 |
|
UK |
1,256 |
408 |
1,664 |
1,040 |
2,704 |
|
Unfunded strategies |
- |
- |
- |
56 |
56 |
|
US |
1,829 |
2,510 |
4,339 |
1,576 |
5,915 |
|
5,418 |
5,148 |
10,566 |
3,488 |
14,054 |
|
|
Net flows: |
|||||
|
Asia Pacific |
(690) |
(14) |
(704) |
(112) |
(816) |
|
Emerging markets |
(70) |
(311) |
(381) |
199 |
(182) |
|
Europe |
(444) |
(575) |
(1,019) |
(133) |
(1,152) |
|
Global |
(840) |
(663) |
(1,504) |
(150) |
(1,653) |
|
High yield |
(12) |
1 |
(12) |
17 |
5 |
|
UK |
(1,088) |
(328) |
(1,416) |
(958) |
(2,375) |
|
Unfunded strategies |
- |
- |
- |
(56) |
(56) |
|
US |
(1,600) |
(2,340) |
(3,940) |
(1,519) |
(5,459) |
|
(4,745) |
(4,231) |
(8,976) |
(2,713) |
(11,688) |
NEW BUSINESS FLOWS FOR 9 MONTHS TO 30 JUNE 2009 - EQUITIES
|
Qtr to 31 Dec 08 £m |
Qtr to 31 Mar 09 £m |
6 mths to 30 Jun 09 £m |
Qtr to 30 Jun 09 £m |
9 mths to 30 Jun 09 £m |
|
|
Gross inflows: |
|||||
|
Asia Pacific |
412 |
328 |
740 |
550 |
1,290 |
|
Global emerging markets |
383 |
446 |
829 |
1,108 |
1,936 |
|
Europe |
2 |
1 |
4 |
9 |
12 |
|
Global & EAFE |
318 |
449 |
767 |
764 |
1,530 |
|
Specialist |
43 |
25 |
68 |
40 |
107 |
|
UK |
24 |
20 |
45 |
24 |
69 |
|
US |
106 |
117 |
223 |
89 |
312 |
|
1,288 |
1,386 |
2,674 |
2,582 |
5,257 |
|
|
Outflows: |
|||||
|
Asia Pacific |
549 |
517 |
1,066 |
448 |
1,514 |
|
Global emerging markets |
223 |
173 |
396 |
251 |
647 |
|
Europe |
19 |
8 |
27 |
17 |
44 |
|
Global & EAFE |
78 |
53 |
131 |
73 |
204 |
|
Specialist |
140 |
73 |
213 |
60 |
274 |
|
UK |
51 |
102 |
153 |
52 |
206 |
|
US |
187 |
216 |
402 |
101 |
503 |
|
1,247 |
1,141 |
2,388 |
1,004 |
3,392 |
|
|
Net flows: |
|||||
|
Asia Pacific |
(137) |
(189) |
(326) |
102 |
(224) |
|
Global emerging markets |
160 |
273 |
433 |
856 |
1,289 |
|
Europe |
(17) |
(7) |
(23) |
(9) |
(32) |
|
Global & EAFE |
240 |
396 |
636 |
690 |
1,326 |
|
Specialist |
(98) |
(48) |
(146) |
(21) |
(166) |
|
UK |
(27) |
(82) |
(108) |
(28) |
(136) |
|
US |
(81) |
(98) |
(179) |
(13) |
(192) |
|
42 |
245 |
287 |
1,578 |
1,865 |
Note: figures in the above tables may appear not to add due to rounding differences
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