Fund manager buoyed by market rally
Monday November 30 2009
The UK's largest listed fund management group said it has seen a sharp slowdown in the number of investors heading for the exit as conditions improve in equity markets.
Aberdeen Asset Management saw an exodus of £29.8 billion in the year to September 30, but said this eased "significantly" in the second half, while it was likewise winning more new business.
It also shrugged off fears over Dubai, saying that major flows of Middle East investment have been coming from places other then Dubai for some time.
The Scottish-headquartered firm reported a £10 million fall in annual pre-tax profits to £85.1 million.
But it has emerged as a survivor of the financial crisis so far by snapping up a raft of struggling rivals and predicted a further wave of consolidation in its sector.
Aberdeen bolstered its scale through a £250 million deal to buy the traditional asset management arm of Credit Suisse earlier this year in a move that gave it another £35.1 billion in assets under management.
It now manages £146.2 billion in funds having made a series of acquisitions in recent years - including the takeover of Deutsche Bank fund management businesses in 2005 - and is hoping to take advantage of more opportunistic buys.
Chairman Roger Cornick said: "Our new financial year has started well, with new business flows and improved markets benefiting revenues and operating costs under tight control.
"Looking ahead, the impact of the financial crisis on asset managers is likely to see more consolidation."
He added: "While some commentators still doubt whether market confidence has been fully restored, the group has emerged from the financial crisis comfortably positioned both to enjoy organic growth and to expand opportunistically as competitors shrink or even withdraw from the industry."
Press Association
