In a trading update today Aberdeen confirmed that their assets under management (AUM) had increased by 3% to £331.2 billion in the two months to the end of August 2014. This did however mostly reflect higher market levels as outflows continued albeit at a reduced rate. However,falls in markets since then may bring assets back down again to their June level by the end of their year to September 2014. But they did point out that the mix of business won and lost was likely to benefit margins.
Otherwise they say the on going integration of the Scottish Widows operations continues to progress on schedule and as expected. This has helped to broaden their business and the savings and synergies coming out of it should help to offset the more difficult times they have been having in their equities and emerging markets activities. Otherwise they said:
"Overall, performance remains robust and short-term equity performance has improved steadily in recent months. In particular, global equity performance has recovered strongly as sentiment towards emerging markets and Asia, in which our funds are overweight, has improved. Nevertheless, our focus remains on our bottom up, fundamental style of investing for the longer term."
See the full statement for full details.
Summary and Conclusion
A steady as she goes type of update from Aberdeen today, which is good and as the shares have drifted back recently to oversold levels (see Chart below) and they look reasonable value on around 13x with a 4.4% yield for the current year. They have the benefit of integration savings etc. and a more broadly based business going forward but as ever they will be geared into market movements, They should however continue to potentially benefit from investors seeking better returns in a low interest rate environment and as such like others in the sector look like a good way of benefiting from this trend.