Aberdeen Asset Management (ADN) releases interim results on Tuesday, and assets under management are expected to have been dented by a continued outflow of funds from equities in emerging markets.
From December to February, net equity outflows amounted to £7bn, depleting total assets under management from £194bn to £187bn. The company's performance has been a lot better in other asset classes, however. Fixed-income assets were stable at £35.5bn, while the property portfolio rose marginally to £15.7bn.
Predictably, in an April update management remained cautious about the global market outlook and investor sentiment. Yet at the operating level cost benefits are likely to emerge from the integration of Scottish Widows Investment Partnership, which was acquired last November with assets under management of around £136bn. Crucially, there has been no significant exodus of clients as a result of the acquisition; Scottish Widows assets have actually risen by £2bn since the acquisition.
Analysts at Numis Securities are forecasting full-year pre-tax profits of £476m and EPS of 30.1p (from £483m and 32.5p in 2013).
