Why Aberdeen Asset Management Is Up 52% This Year

Published in Company Comment on 10 October 2012

Aberdeen Asset Management (LSE: ADN) has issued a series of resilient statements this year.

Aberdeen Asset Management (LSE: ADN) has advanced 52% to 322p so far during 2012, making the share one of this year's best performers in the FTSE 100 (UKX).

The investment management group, which manages assets for institutions and private investors worldwide, seems to have impressed the market with a series of resilient statements.

During April, Aberdeen announced half-year results that showed revenues up 7% to £413 million, profits up 14% to £162 million and a dividend up 16% to 4.4p per share. The group claimed a continued focus on organic growth and cost controls had delivered the progress.

During July, Aberdeen's third-quarter statement revealed assets under management had dropped by 1% to £183 billion following "subdued conditions in the world's financial markets". However, the update revealed net new client money of £300 million was received during the quarter, which would add an extra £15 million a year in fees.

Then in September, Aberdeen published a pre-close trading update that showed total assets under management up by £1 billion to £184 billion and new client money that would bring in a further £10 million in fees.

Martin Gilbert, the group's chief executive, commented at the time:

"With uncertainty surrounding the global macro-economic situation our disciplined and fundamental approach to investing continues to attract flows from a wide range of clients from around the world. Our strong performance across a variety of capabilities and products means we remain well positioned to meet the needs of investors in a constantly changing environment."

Aberdeen's annual results will be published on November 26th, which may reveal further encouraging news that can impress investors.

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> Barry does not own any share mentioned in this article.

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RossMacLeod 12 Oct 2012 , 2:22pm

It looks like they make approx 5% profit per annum on all money invested by private investors etc. How does this compare with TER ratios quoted eg 1.5%. I don't see many adverising that they only take 5% of the fund value every year?????

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