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Aberdeen Asset chief sees greater post-acquisition gains

Tue, 24th Jun 2014 16:00

MONACO, June 24 (Reuters) - British fund manager AberdeenAsset Management Plc sees greater than forecast savingsfrom its recent SWIP acquisition and expects to raise itsdividend this year, as well as seeing scope to buy back shares,its chief executive said on Tuesday.

Speaking on the sidelines of the Fund Forum conference inMonaco on Tuesday, Martin Gilbert said the integration of SWIPwas going well and the group was focused on "the hard bit",around front-office integration, which should be finished in thenext two to three weeks.

Once the acquisition from Lloyds Banking Group Plc was complete, Gilbert saw cost savings from the deal exceedingthe previously expected total of between 48 million pounds($81.6 million) and 50 million, although he declined to commentfurther.

He reiterated a plan to increase the dividend and buy backshares. "We'd really like to see the dividend increasing andthen buying back shares after that."

With analysts predicting a flat year in terms of earnings,Gilbert said he would still look to increase the dividend andsaid broker estimates for an increase of between 10 and 15percent were "not unreasonable".

In the full year to Sept. 30, 2013, Aberdeen - based in theScottish city after which it is named - increased its dividend39 percent to 16 pence. The 2014 half-year payout was up 12.5percent to 6.75 pence.

BROADLY NEUTRAL

Aberdeen recently warned its profits had been hit by clientspulling money out of its core emerging markets funds and Gilbertsaid that after a "difficult" 2013 for emerging market equityoutflows, which continued into the first two months of 2014, theoutflow had slowed in March and was now "broadlyneutral".

He also said he had no near-term plans to add to a run ofacquisitions, most recently of SWIP which was completed at theend of March.

"This financial year, to 30th September, is the year when weintegrate SWIP. The next financial year is when we see a cleanset of numbers for our business and we're hoping to see growth,especially in those areas we've just beefed up," including fixedincome and UK property, he said.

"We've no plans to do any (more) acquisitions and we're notin discussions with anyone."

With Scotland due to vote on whether to leave the UnitedKingdom on Sept. 18, Gilbert said Aberdeen would stick to aneutral stance on the issue of independence - contrasting withpeers such as Standard Life Plc who have gone public withconcerns about the implications of a "yes" vote.

"The people that have (taken a stance) have taken it forwhatever reason, only they will know. But I'm not sure it's beenthe best strategy, to take a stance, because you do run the riskof attracting criticism from whatever side of the equation.

"I think it's best, on this occasion, to keep your headdown."($1 = 0.5880 British Pounds) (Editing by David Holmes)

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Comments and questions to newsroom@alliancenews.com
  
A full 21-day events calendar is provided each day with a subscription to Alliance News UK Professional.
  
Copyright 2024 Alliance News Ltd. All Rights Reserved.

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