Aberdeen’s assets climb amid weaker pound

Bloomberg

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.
Aberdeen Asset Management PLC is an international investment management group, managing assets for both institutions and private investors from offices around the world. Its head office is in Aberdeen, Scotland. The company is listed on the London Stock Exchange and it is a constituent of the FTSE 250 Index.
The company was established in 1983 through a management buy-out of an investment trust. It was then listed on the London Stock Exchange in 1991. In recent years, it has seen significant growth from acquisitions. In 2000 it acquired Murray Johnstone, followed by Edinburgh Fund Managers in 2003, parts of Deutsche Asset Management in 2005 and 2007, Glasgow Investment Managers in 2007, Goodman Property Investors in 2008, certain investment businesses of Credit Suisse Asset Management in 2009, and certain contracts and assets from RBS Asset Management in 2010.
The Company sponsored The Boat Race between 1999 and 2001. In 2010 it signed a four-year sponsorship agreement with the Dad Vail Regatta to be title sponsor until 2013, the event’s 75th Anniversary. The agreement has helped to keep the famous college rowing regatta in Philadelphia, the Group’s North American headquarters. In March 2012 it took over sponsorship of golf’s Scottish Open for the following three years. Other sponsorships include the Cowes Week sailing regatta, Aberdeen Brunei Senior Masters Golf Tournament, Edinburgh Rugby club, and Colin Montgomerie.

and Paul Lawrie and Formula One driver Paul di Resta.