Scotland business

Aberdeen Asset Management share price rises sharply

trader in front of screen Image copyright Getty Images
Image caption Aberdeen said conditions in emerging markets remained "subdued"

Shares in Aberdeen Asset Management rose sharply on Tuesday after the company announced it was implementing cost-cutting measures.

Aberdeen said it had identified savings after weakness in emerging markets drove more cash out of its funds in the first two months of 2014.

The company reported outflows of £3.9bn, largely from its Asian and emerging market equity funds.

Money leaving its funds slowed in March with outflows expected at about £200m.

Its share price was up by about 7.9% at 15:00 on Tuesday.

In a statement, Aberdeen said it secured £4bn in gross new business in the first two months of the year and had a strong pipeline.

Total assets under management at the end of February were £186.5bn.

The update came as Aberdeen confirmed its £550m takeover of Scottish Widows Investment Partnership (SWIP) had been completed.

It leaves the newly-joined Aberdeen company with assets under management - backdated to 28 February - of £324.5bn.

'Cost savings'

In the trading update, Aberdeen chief executive Martin Gilbert said: "Encouraging inflows to emerging market debt, high yield bonds and property have partly offset net outflows from our Asian and emerging market equity products, and we have seen further growth in the pipeline of new business awarded but not funded at the end of February.

"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.

"However, we will not change our long-term approach to investment which has delivered excellent returns to our clients over time and we look forward to building on the additional scale and product diversity that the acquisition of SWIP brings."

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