Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

'Welcome slowing' into Kaloo range curbs new business at Aberdeen

'Welcome slowing' into Kaloo range curbs new business at Aberdeen

Gross new business at Aberdeen Asset Management took a slight knock over the three months to the end of June, totalling £8.8 billion for the stretch compared to a previous £10.9 billion.

Over nine months, Aberdeen has attracted new business amounting to £27 billion, but over the last three months its gross inflows came in roughly £1.6 billion lower than the previous quarter.

Undeterred, analysts at Peel Hunt upgraded the FTSE 100 to a 'buy' from 'hold', arguing it has around 20% upside at its current 249.27p valuation.

'Flows were broadly as expected,' the brokerage wrote in its morning note to clients, giving Aberdeen a price target of 300p per share.

Aberdeen attributed the decline to its stemming of flows into its global emerging market (GEM) funds, a decision it announced earlier this year owing to the popularity of the franchise. 

The firm said there had been a 'welcome slowing' into the range, which includes the $9.8 billion Luxembourg domiciled Aberdeen Global Emerging Markets Equity fund and the £2.7 billion UK domiciled  Aberdeen Emerging Markets fund, both run by Devan Kaloo and his team.

Martin Gilbert, chief executive of Aberdeen, said the firm was continuing to grow despite the tough conditions, adding in that its interim update to investors had shown its balance sheet remained strong.

'This has been another successful quarter for Aberdeen, despite the global economic uncertainties and subdued conditions in the world's financial markets. We continue to concentrate on delivering superior investment performance and service for our clients, which enables us to grow organically whilst maintaining a strong balance sheet,' Gilbert (pictured) said.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Brewin's Foster: the world’s most unconventional monetary policies

Brewin's Foster: the world’s most unconventional monetary policies

In this week's podcast, Guy Foster asks why the world’s biggest economies are pursuing some of the world’s most unconventional monetary policies. 

Play Charles Tan on Woodford & hidden trust income gems

Charles Tan on Woodford & hidden trust income gems

Cantor Fitzgerald investment company analyst Charles Tan discusses Woodford Patient Capital and some of the income trusts slipping under the radar.  

Play Taxicab Tenner: SGPB Hambros CIO Eric Verleyen

Taxicab Tenner: SGPB Hambros CIO Eric Verleyen

In the second episode of our new series, Verleyen jumps on board a black cab and explains how hard it's become to find good valuation on the market.  

Wealth Manager on Twitter