The firm stated that its assets under management (AuM) on 31 August were £201.7 billion, in comparison with £209.6 billion last year. The 3.8% decline was partially due adverse movements in the foreign exchange markets. However, Aberdeen Asset Management said that despite a small reduction in AuM it still feels confident that full-year underlying pre-tax profits will be between £431 million and £477 million, which would be at the top end of analysts’ expectations. In 2012, the firm made £347 million in underlying pre-tax profits, representing a 15% increase compared with the 2011 level.
The asset manager stated that the first two months of the fourth quarter have been tough, due to ‘considerable’ volatility in the equity and bond markets. This has impacted the sector as a whole. Due to the uncertainty in the financial markets, Aberdeen Asset Management has seen increased interest in non-equity products like its new property funds. However, the financial situation in the eurozone is now relatively calmer than it was a few years ago, so this may entice more clients to invest in equity funds in future.