Aberdeen's AuM rises as investor confidence improves

published 26 March 2012

Fund manager Aberdeen Asset Management has seen investors continue to return to equity markets in 2012.

Assets under management at the end of February stood at £184.4bn, up from £173.9bn at the end of 2011. Of the £10.5bn increase, £1.4bn was accounted for by net new business, with equities products seeing net inflows of £2.5bn, compensating for net outflows in other parts of the business.

In the first five months of the Aberdeen's financial year, the group has seen net outflows of £1.4bn, compared to net outflows of £0.6bn in the corresponding period of the previous year.

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"The ongoing trend of new business flows into higher margin products continues to support the growth in revenues; we estimate that the net flows for the two month period to 29 February 2012 will add approximately £20m of annualised recurring fee income," the company said.

The group said that inflows to its emerging market equity funds have stayed "extremely strong" as investor confidence and risk appetite improved. Flows into global and Asia Pacific equities have also been healthy.

"Performance remains strong and our disciplined investment approach means we are well placed to continue to deliver for our investors," said Chief Executive Martin Gilbert.

The trading update was well-received by investors on Monday, with the stock trading 4.92% higher at 262.2p in afternoon trade.