Wealth Manager - the site for professional investment managers

Register to get unlimited access to 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
Play French fund CEOs: 'Brexit is a lose-lose situation for all of us'

French fund CEOs: 'Brexit is a lose-lose situation for all of us'

'We'll all lose out - but London is an international city, Paris is not.' Leading French asset management CEOs tell us what they think Brexit will mean for the investment business.

Play Henderson Eurotrust's Stevenson: dealing with European cynicism

Henderson Eurotrust's Stevenson: dealing with European cynicism

Tim Stevenson talks about where he finds his opportunities in the current environment in Europe

Play Mark Barnett - part 2: why I'm not buying Lloyds

Mark Barnett - part 2: why I'm not buying Lloyds

In the second part of our exclusive video interview, Barnett explains why he has no intention of buying Lloyds, and where he sees the greatest income opportunities.

Read More
Wealth Manager on Twitter