Aberdeen 'encouraged' despite year's slow start

The first couple of months of the year have not been the easiest for fund managers, Martin Gilbert, chief executive of £176 billion Aberdeen Asset Management, admitted today.

"While market conditions have been difficult since the beginning of the year, it is encouraging to see net inflows in the first two months," said Gilbert. "With a healthy pipeline of new business supported by disciplined investment processes and continued strong performance, the outlook for organic growth of assets under management remains favourable."

January and February saw an extra £1 billion of new money coming in to Aberdeen's equity funds.

While there were outflows of £200 million from fixed interest, alternatives, property and money market funds, the overall inflow was a positive £200 million.

That is better than most of the industry in January and February as many investors sold out of emerging market equity funds.

Gilbert also said new business generates higher margins than the business going out. The average margin on funds under management has risen to 39 basis points from 37.

Gilbert expects markets to remain volatile for much of the year, but said that would suit the firm's management philosophy and style.