The better performance came despite a £1.7bn net outflow of funds, which, together with the effects of a tough investment climate, left total assets under management down from £178.7bn to £169.9bn. However, a bulk of the outflows, which came in the last quarter of the financial year, comprised lower-margin segregated mandates and most of the £43bn of gross inflows went into the group's higher-margin pooled funds. This helped boost management fee income by 24 per cent to £739.2m, while performance fee income rose from £30.3m to £36.3m.
Investor demand was especially strong for higher-margin, emerging market debt and Asian fixed-income products, which attracted net inflows of £1.6bn. And while a quiet first-half left the property portfolio nursing net outflows of £0.6bn, momentum started to build through the second half, with £1.2bn of new business wins.
Numis Securities expects 2012 adjusted pre-tax profits of £302.2m and EPS of 18.7p (from £293m and 18.1p in 2011).
|ABERDEEN ASSET MANAGEMENT (ADN)|
|ORD PRICE:||214p||MARKET VALUE:||£2.4bn|
|TOUCH:||213-214p||12-MONTH HIGH:||242p||LOW: 164p|
|DIVIDEND YIELD:||4.2%||PE RATIO:||14|
|NET ASSET VALUE:||89p*||NET CASH:||£128m|
Fee income is growing faster than costs and there's a strong balance sheet. Aberdeen is also successfully attracting new business, despite the tough climate, and there's a decent yield, too, while a forward PE ratio of 11 looks undemanding. Long-term good value.
Last IC view: Good value, 233p, 6 May 2011