Aberdeen share price falls as group reports £4.8 billion in net outflows

on Feb 3, 2015
Updated: Oct 21, 2019
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Aberdeen Asset Management Plc’s (LON:ADN) share price has dropped during today’s trading session since the group earlier in the day reported £4.8 billion in net outflows in the first quarter of its financial year. The FTSE 100-listed asset manager also warned that it expected ongoing uncertainty in the demand for its investment products due to continued volatility in global markets.

As of 11:57 GMT today, Aberdeen’s shares were trading 3.79 percent down at 423.40p. The company’s stock has advanced 1.83 percent since the beginning of the year.

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The company released a trading update as part of its regulatory statement issued this morning UK time, revealing that assets under management had contracted to £323.3 billion by the end of last year from £324.4 billion in the three months to 30 September. Net outflows from its funds rose to £4.8 billion during the first quarter from £2.8 billion in the preceding period, as weaker investor sentiment in emerging market funds produced an uptick in outflows during December.

Chief executive Martin Gilbert wrote in the release that the first two months of the quarter “were encouraging with overall flows in line with the previous quarter and equity flows positive” but that “December was a reminder that investor sentiment remains fragile”.
The Footsie mainstay warned in its outlook statement that it expects global markets and demand for investment products to remain volatile going forward. Aberdeen added that it was gaining new business at good fee margins, while the integration of the Scottish Widows Investment Partnership business it acquired in 2013 was on track and final cost savings were likely to be ahead of initial estimates.
According to the Financial Times, as of 02 February 2015 the consensus forecast amongst 36 polled investment analysts covering Aberdeen Asset Management plc has it that the company will outperform the market. The median target of the 20 analysts offering 12 month price targets is 475.50p with a low estimate of 415.00p and a high of 560.00p.
As of 12:33 GMT, Tuesday, 03 February, Aberdeen Asset Management plc share price is 422.55p.

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