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Firm diversifying business

Gilbert admits emerging markets slip ‘has some way to go’

Aberdeen Asset Management

Aberdeen Asset Management shares (click to enlarge). Source: LSE

Mon: Fund manager Aberdeen Asset Management saw a further loss of business in emerging markets over the past year which is not over yet.

Shares were down 15p.4p or 4.6% at 319.4p and are 26.6% lower over the year as investors have become concerned by the flight from China and other slower growth regions.

Martin Gilbert, chief executive, admitted he did not know how near the bottom the market had become but he believes that diversifying the business is helping prop up the business and that in the long term emerging markets will prove to be attractive.

“These solid financial results reflect, in part, the work we have undertaken to diversify the business and maintain a strong balance sheet,” he said.

“The cyclical correction in Asian and Emerging Markets and resulting negative investor sentiment has, as expected, led to further flows from our equities business. While we believe the current weakness may have some way to run, the long term fundamental attractions of investing in these high growth economies remain compelling for patient investors.

“We continue to rebalance and diversify the business, to focus on managing our costs and to generate cash and this has helped to mitigate the impact of the outflows we’ve seen.  We intend to continue with this strategy alongside ensuring we continue to deliver long term value for our clients and shareholders.”

Highlights

 ·    Net revenue is up 5% to £1,169.0 million (2014: £1,117.6 million)

·    Underlying profit before tax increased to £491.6 million (2014: £490.3 million)

·    Continued strong year-end cash position of £567.7 million

·    Final dividend of 12.0p per share (2014: 11.25p), making 19.5p for the full year (2014: 18.0p)

·    AuM £283.7 billion (2014: £324.4 billion) reflecting negative sentiment towards Emerging Markets

·    Product diversification and cost discipline progress in line with strategy

British American Tobacco has been accused of bribing politicians and civil servants in a BBC television documentary, which could leave it open to prosecution and major fines.

The Panorama investigation alleged that the company bribed government officials in a number of East African countries.

Morrisons, G4S and Meggitt look set to lose their spots in the FTSE 100 on Wednesday, with Worldpay, Provident Financial and DCC likely to replace them.

The FTSE committee will reveal the results of its quarterly index on Wednesday, with changes effective from 21 December.

The FTSE 100 closed down 19pts at 6,356 while the FTSE 250 rose 124pts to 17,389.

 

 

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