Aberdeen Says Assets Under Management Climb Amid Weaker Poundby
Aberdeen Asset Management Plc’s funds overseen for clients rose 2.9 percent in the fiscal third quarter as the benefits of a weak pound helped offset outflows. The shares climbed.
Assets under management increased to 301.4 billion pounds ($396 billion) from 292.8 billion pounds in the three months through June, Aberdeen said in a statement on Monday. Value appreciation also helped to outweigh 8.9 billion pounds of net outflows during the quarter.
“It is too early to call an end of outflows,” given that they increased from the previous three months, said Jonathan Richards, an analyst at Keefe, Bruyette & Woods in London, said in a note to clients. The firm has an underweight rating on the shares.
Aberdeen was among operators of seven U.K. property funds, overseeing a total of about 18 billion pounds of assets, that froze redemptions earlier this month to preserve cash levels and avoid a fire sale of commercial real estate assets. The fund has since reopened and the discount for withdrawals was lowered to 7 percent after investors reversed requests to get their money back and properties were sold.
The Scottish asset manager gained as much as 2.9 percent in London trading and was up 2.4 percent at 323.70 pence at 11:33 a.m.
Aberdeen had net outflows of 1.5 billion pounds from property and 2.9 billion pounds from equities in the fiscal third quarter.
“There are many uncertainties out there, including the shape of the U.K.’s future relationship with the EU, which might undermine market confidence,” Chief Executive Officer Martin Gilbert said in the statement. “We remain well placed to take advantage, on behalf of our clients, of any weakness and will continue to focus on fundamentals rather than be distracted by market noise.”
The alternatives unit had 1.2 billion pounds of outflows after an institutional investor in a recently-acquired fund changed strategy, according to the statement. The property team won commitments for new funds starting in the future, the company said.