27th Sep 2005 07:01
Aberdeen Asset Management PLC27 September 2005 ABERDEEN ASSET MANAGEMENT PLC TRADING STATEMENT Aberdeen Asset Management is issuing the following trading update prior toentering the close period before the preliminary announcement, on 5 December2005, of results for the year to 30 September 2005. The proceeds of the recent rights issue have now been received and the DeutscheAsset Management ("DeAM") acquisition (other than the Philadelphia fixed incomebusiness) is due to complete on 30 September 2005, in accordance with theoriginal timetable. As disclosed in the Circular to shareholders, completion ofthe Philadelphia fixed income element of the transaction is expected to happenaround 30 November 2005 and we have already had a healthy level of acceptancesfrom the Philadelphia clients who are required to consent to the transaction. Considerable work has been undertaken jointly with DeAM management sinceannouncement of the transaction and we remain confident of achieving a smoothintegration of the DeAM business into the enlarged Aberdeen Group. We have alsoreceived encouraging feedback from the DeAM client base and, while we would notwish to pre-judge the intentions of those clients who have yet to take adecision, we are comfortable that this process is progressing well. New business generation remains extremely encouraging and the substantial netinflows reported in 2004 and the first half of 2005 have continued unabated.These inflows, combined with the more positive tone in global stock markets,have boosted assets under management to £28.1 billion at 31 August 2005, anincrease of 10.5% compared to the total at 31 March 2005. The Group's gross new business for the 5 months to 31 August, including mandatesawarded but not yet funded, totalled £2.8 billion, bringing the total for thefinancial year to date to £5.3 billion. Net new business for the 5 months to 31August totalled £1.8 billion, of which £1.2 billion had been funded by 31 Augustand is included in assets under management at that date. As a result, net newbusiness for the 11 months to 31 August was as follows: Funded Yet to fund Total £m £m £mNet inflows to open-end funds 1,372 - 1,372Segregated account mandates 882 639 1,521Closed-end funds (35) - (35) ---------- ---------- ---------Total fund management division 2,219 639 2,858Net inflows to property open-end 458 - 458funds ---------- ---------- ---------Group total 2,677 639 3,316 ---------- ---------- --------- The new business flows reported above include mandates awarded by investors inEurope, North America, the Middle East and the Asia Pacific region. We continueto achieve a good rate of conversion of new mandate opportunities into actualinflows and the pipeline of further opportunities remains healthy and,importantly, investment performance remains strong across all of the Group'sdisciplines. Net outflows of £35 million in closed-end funds reflect a number offactors, including liquidations of funds reaching the ends of their lives, whichcaused an outflow of £195 million, and share buy-backs, which accounted for afurther £79 million of outflows. However, new closed-end fund mandates totalling£340 million have been added during the period and overall our total closed-endassets are virtually unchanged. As previously reported, Britannic Group's impending acquisition of Century Groupwill result in a reduction in assets under management of approximately £1.5billion from October 2005. However, the income has already been replaced by thenew business flows, on which annualised fee income will be several times thevalue of fees earned on the Century contract. We will have the additionalbenefit of receiving cash proceeds of £11.3 million from the redemption of ourinvestment in Century's preference shares in early October 2005. The additional income from the new business flows is contributing to animproving operating margin. We continue to pay close attention to operatingcosts and our focus will now be on identifying any further efficiencies whichmay be made in this area whilst still investing in the infrastructure requiredto deliver profitable growth. The property management division continues to develop and has achieved veryhealthy inflows into its Norwegian and Danish property funds, with good progressalso being made on other new funds. This division is well positioned to continueits growth and improvement in margins and, with the benefit of the recent rightsissue proceeds, we now have the capital resources required to properly seedthese new initiatives. For further information: Maitland 020 7379 5151Neil BennettMichelle Jeffery ABERDEEN ASSET MANAGEMENT PLC ASSETS UNDER MANAGEMENT AT 31 AUGUST 2005 31 Aug 05 31 Mar 05 30 Sep 04 £m £m £mBy type of mandate:Institutional funds 15,457 13,897 11,822Unit trusts and open end funds 6,734 5,725 4,555Investment trusts and closed end funds 5,154 5,016 4,966Private portfolios 439 412 392Private equity 308 362 363 --------- -------- --------- 28,092 25,412 22,098 --------- -------- ---------By asset class:Equities: UK 6,987 6,076 6,740Asia Pacific 7,308 5,557 4,006North America 1,207 1,098 1,215Europe 1,109 1,087 994Japan 652 640 560Emerging markets 346 278 266 --------- -------- --------- 17,609 14,736 13,781Fixed interest & cash 5,186 5,406 4,405Property 5,297 5,270 3,912 --------- -------- --------- 28,092 25,412 22,098 --------- -------- --------- This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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