Aberdeen Asset Management sees its fee income increase by £18m

Published on Tuesday 23 March 2010 20:05

ABERDEEN Asset Management yesterday posted an £18 million rise in fee income and said it was successfully wrapping the businesses it bought from Royal Bank of Scotland into its operations.

Gross new business flows for the five months to 28 February totalled 16.1 billion, compared with the 19.1bn won during the whole previous financial year.

Outflows for the same period were 19.7bn, resulting in net outflows for the period of 3.6bn.

But Aberdeen said the revenue margins earned on the inflows were higher than on the outflows, resulting in the fee income rise.

Assets under management have risen by 10.4 per cent to 161.4bn since 30 September as a result of the RBS acquisition.

Chief executive Martin Gilbert said: "Good new business flows, strong investment performance and improving margins continue to enable us to strengthen our balance sheet.

"We remain firmly focused on organic growth, generating cash and reducing debt.

"The recent acquisition and integration of certain businesses from RBS Asset Management broadens the product range we offer our clients in terms of alternative investment strategies."

Analysts at KBC Peel Hunt predicted that net business flows will turn positive in the second half, a forecast welcomed by Bill Rattray, Aberdeen's chief financial officer, who said the firm had "healthy flows in equities".