* Assets hit 184.3 bln stg at end-August
* Net outflows 100 million in July and August
* Clients exit lower margin, buy higher margin
By Tommy Wilkes
LONDON, Sept 24 Aberdeen Asset Management
reported net ouflows in the two months to the end of
August, missing analysts' expectations as a strong recovery in
global markets failed to persuade more clients to invest in
The fund manager, headed by Martin Gilbert as chief
executive, said in a trading update on Monday clients had pulled
100 million pounds ($163 million) from its funds during the
While clients ploughed 2 billion pounds into equities, which
tend to command higher fees, they pulled out more from its other
products including fixed income and multi-asset funds.
Analysts at UBS had forecast net inflows of 200 million
pounds, while at JP Morgan they had expected 100 million pounds.
Central bank action to boost flagging economies has helped
spur strong gains in stock markets over the past couple of
months, boosting demand for equity fund products, although
jitters about the euro zone debt crisis mean clients remain
A positive performance in Aberdeen's fund range outweighed
the net outflows so that assets under management rose to 184.3
billion pounds at end-August from 182.7 billion pounds two
"We are maintaining our above consensus EPS (earnings per
share) estimates as continued equity inflows and higher-margin
fixed income inflows relative to business lost continue to drive
improvements in revenue margins, offsetting a shortfall relative
to our estimated AUM (assets under management) at end August,"
JP Morgan analysts said in a note.
Aberdeen said clients continued to buy into its
higher-margin pooled products in the two months, including
global emerging markets and global equities funds, and to exit
its lower-margin segregated mandates focused on fixed income.
The shift into higher margin products will add around 10
million pounds of annualised recurring fee income, the company
"With uncertainty surrounding the global macro-economic
situation our disciplined and fundamental approach to investing
continues to attract flows from a wide range of clients from
around the world," Gilbert said in the statement.
Shares in the FTSE 100 index constituent were down 0.23
percent at 307.8 pence by 0927 GMT, when the FTSE 100
was down 0.47 percent.