(Corrects day in second paragraph)
* Net outflows 3.9 bln stg in year to end-Feb.
* Further 200 mln stg exits funds in March
* Cautious about global market outlook, investor sentiment
* Shares biggest gainers on FTSE 100 index
By Simon Jessop
LONDON, April 1 Aberdeen Asset Management
said it planned to cut costs after weakness in emerging
markets drove more money out of its funds in the first two
months of the year, lifting its shares.
Outflows were 3.9 billion pounds ($6.50 billion), largely
from its Asian and emerging market equity funds, Aberdeen said
Money leaving its funds slowed in March and outflows for
that month were expected to be around 200 million pounds, the
fund manager said.
It remained cautious on the global market outlook and
Shares in Aberdeen rose 5.6 percent after the statement and
led gainers in the blue-chip FTSE 100 in heavy volume,
which was 80 percent of its three-month daily average after just
over an hour of trade.
Numis analyst David McCann said the cost savings "should
help cushion earnings from current revenue pressures", although
he retained a "hold" recommendation on the stock, largely on
In the first two months of the year Aberdeen said it secured
4 billion pounds in gross new business and had a strong
pipeline. Total assets under management at end-Feb. were 186.5
"Conditions in emerging markets remain subdued, and we have
therefore identified and are implementing some cost savings,
over and above the synergies we expect from the SWIP
transaction," Aberdeen Chief Executive Martin Gilbert said in a
statement, referring to its purchase of the fund arm of Lloyds
Banking Group, which completed on Tuesday.
($1 = 0.5998 British Pounds)
(Reporting by Simon Jessop; Editing by Erica Billingham)