Aberdeen Asset Management grew its assets under management (AUM) in the three months to 30 June – and the investment group said it is poised to take advantage of weakness in the market following the UK’s vote to leave the EU.
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AAM notes in a third quarter trading update, the fall in the value of sterling post Brexit vote contributed to an increase in the value of assets under management, rising to £301.4 billion, up from £292.8 billion the previous quarter.
Aberdeen Asset Management saw £8.9bn of outflows during the second quarter of 2016 but its overall assets under management were boosted by weaker sterling following Brexit.
The group notes it is “well positioned operationally” post Brexit “with well-established and substantial businesses both in the United Kingdom and in Luxembourg”.
“We continue to benefit from the diversified asset and client base of the business”, said Aberdeen boss Martin Gilbert.
Aberdeen Asset Management PLC (LON:ADN) reported net outflows of £8.9bn during the quarter ending June, but said that equity investment performance was recovering well after the Brexit shake-up.
Net outflows were worse than expected, according to Liberum, at £8.9bn – totalling £25.6bn for the 9 months.
Aberdeen imposed a week long suspension on its highly-exposed UK Property Fund following the referendum.
While the analyst said the latest quarter did see some moderation in the pace of withdrawals from Aberdeen’s equity funds, it is hard to get too excited by this, since that “still equates to over 3% of equity assets lost in just three months”.
The latest outflows mark thirteen straight quarters of fund outflow.
Numis Securities on Monday reiterated Aberdeen Asset Management’s analyst rating as “Hold” with its price target of 300 highlighting a potential decrease of -7.35% from Aberdeen Asset Management’s current price of 323.8.
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“There are many uncertainties out there, including the shape of the UK’s future relationship with the European Union, which might undermine market confidence”.
