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Aberdeen is a buy after inflows hit £1.4bn
by Dylan Lobo on Mar 26, 2012 at 07:47
Aberdeen Asset Management saw assets under management jump 6% in the first two months of the year as inflows turned positive.
Assets rose from £173.9 billion on 31 December 2011 to £184.4 billion on 29 February 2012. Net inflows stood at £1.4 billion for the period with inflows into higher margin products adding £20 million in annual revenues.
As risk appetite returned, the firm’s equity business accounted for the lion’s share of inflows at £2.5 billion, compensating for an outflow of £0.4 billion in its fixed income business over the two months.
The firm’s emerging markets business saw ‘extremely strong’ demand, although the group sought to curtail inflows into the franchise over the review period.
The inflows this year has reduced to the total outflow in the five months to 29 February to £1.4 billion. The update will be the last before Aberdeen releases its half year numbers scheduled for 30 April.
Aberdeen chief executive Martin Gilbert (pictured) said: ‘These figures reflect the continuing theme of flows into higher margin products across the business. Performance remains strong and our disciplined investment approach means we are well placed to continue to deliver for our investors.’
Following Aberdeen's results announcement analysts at Investec upgraded their price target on the stock from 233p to 270p and reiterated its pevious 'buy' rating.
'An overall good AuM number posted for the five months to end-February, driven by £1.4 billion net inflows,' the investment bank's Arun Melmane explained, however he added that Aberdeen's performance was also lent a boost by the higher level of equity markets more generally.
Shortly before 10am today, the asset manager traded at 257.20p, a rise of 2.96%.
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