Aberdeen’s Assets Rise 10% on Strong Emerging Market Inflows
Aberdeen Asset Management Plc (ADN), Scotland’s biggest fund manager, said assets under management rose 10 percent in the first two months of the year after “extremely strong” inflows into emerging-market equity funds.
Assets under management climbed by 18.9 billion pounds ($28.8 billion), including 4.3 billion pounds of net new business inflows into its equity funds, the Aberdeen, Scotland- based firm said today in a statement. The stock rose as much as 6.8 percent.
“It’s a very strong result, with inflows stronger than most people were anticipating,” said Stuart Duncan, a London- based analyst at Peel Hunt LLP with a hold rating on the stock. “Asian and global emerging-market funds are the main drivers. It’s very consistent story.”
Aberdeen is trying to stem inflows into its main global emerging-market funds because the size makes them more difficult to invest and maintain performance. The firm plans to close some U.S.-domiciled funds to new investors and will impose a 2 percent initial fee on new investments into funds based in the U.K. and Luxembourg.
“The capacity of the GEM products is still an issue, and they’ve got to manage the flows,” Duncan said. “They’re running ahead of where the company would like at the moment.”
The stock rose 5.6 percent to 431.8 pence a share at 9:45 a.m. in London, valuing the company at about 5.2 billion pounds.
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