Aberdeen Asset Management (AAM) has seen the value of its funds rise, despite suffering net outflows in recent months as a strong recovery in global markets failed to persuade more clients to invest their cash.
In a trading update ahead of its full-year results, the fund manager said a positive performance across its fund range had outweighed the £100 million of net outflows during July and August. This helped overall assets under management rise to £184.3 billion, up from £182.7bn at the end of June.
AAM said clients continued to buy into its higher-margin pooled products, including global emerging markets and global equities funds, with a better-than-expected £2bn going into equities, while £1.3bn flowed out of lower-margin fixed income products.
Finance director Bill Rattray told The Scotsman that the firm has seen an increase in investor demand for emerging market debt, and it expects that trend to continue.
He added: “On the equities side, we continue to see reasonably good inflows. Fixed income has a better underlying feel to it, but you can never predict the timing of when the flows turn.”
Rae Maile, an analyst at JP Morgan Cazenove, said: “Although continued outflows in fixed income are disappointing, we take heart from continued progress in gross new business wins of £1bn in the two months, of which £400 million was emerging market debt.”
Overall, the company estimated that the shift into higher-margin areas will add about £10m of annual fee income.
Chief executive Martin Gilbert said: “With uncertainty surrounding the global macro- economic situation … our strong performance across a variety of capabilities and products means we remain well- positioned to meet the needs of investors in a constantly changing environment.”
Peel Hunt analyst Stuart Duncan said he was forecasting adjusted pre-tax profits of £334.5m for the year, up from £301.9m a year ago. He added: “With the underlying momentum remaining strong, there is scope for 2013 estimates to start moving up, given equity markets continue to rise.”
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