Aberdeen Asset Management Share Discussion Threads

[its the oxman] 01/4/2014 08:54

Shares up. Positive trading update re pipeline and no exodus of funds. Additional synergies / cost savings. What is there not to like. Apart from the low share price of course.

[seekerofvalue] 29/3/2014 10:43

badtime,
The trading update next Tuesday should confirm that ADN is on solid foundations. Mr Gilbert should confirm that the SWIP deal, Pensions, Annuities and ISA changes are all positive tailwinds for the company.

After the success of the INPP thread, I decided to give starting a thread another go.

rathlindri,
I don't have an end of year target. I am invested for capital preservation and long-term rule of 72 appreciation in growth of my investment. As this suits my conservative approach.

[rathlindri] 29/3/2014 10:03

SOV, looks like you timed it well...what is your share price target for end of the year?

[seekerofvalue] 29/3/2014 09:58

Hello everyone after the confirmation that the ADN deal to buy SWIP would go through. I took the opportunity to look at what the deal would mean for the value of ADN and for shareholders. After doing this I purchased some shares for £3.638p as a core component of my long-term investment portfolio.

I also started a new thread so that we can detail their value creation long-term.

ABERDEEN marries SCOTTISH WIDOW to create a global asset management behemoth

[calvin1947] 29/3/2014 01:29

Trading statement due Monday pre-market, I guess the rise over the last week is due to the impending statement, and the 11% rise in emerging markets, also the Chinese willing to throw cash at there ailing economy, the sudden easing of tensions in Russia, and the impending election results from Thailand.

Depending how the trading statement is received on Monday will determine how the share price will progress through 2014, it's not been a favourable month for upgrades more downgrades,we may see developments on upgrades of the stock over the coming months.

[its the oxman] 28/3/2014 22:21

Nice to regain 400p. Even if just briefly.

[badtime] 26/3/2014 21:07

Moving in the right direction of your buying price seeker

[seekerofvalue] 24/3/2014 18:01

Aberdeen Asset Management has completed its deal to buy Scottish Widows Investment Partnership (Swip).

The deal has finally received regulatory approval, having been agreed between Aberdeen and Swip’s parent company Lloyds Banking Group last year.

The deal is expected to be completed after the close of business on March 31 this year, with Aberdeen set to update the market to confirm the merger on April 1.

Martin Gilbert, cheif executive of Aberdeen, said the “migration process” to integrate the two firms “will begin very shortly after completion”.

Gilbert added that the combined businesses would have significant scale across asset classes and argued that they would be able to provide a better service for a bigger client base "including investors who will benefit from yesterday's Budget announcement giving them more freedom to invest their pension pots when they retire."

Swip will swell Aberdeen’s assets by around £136 billion, providing annualised revenues of approximately £234 million.

Aberdeen Asset Management will become the sixth-largest listed asset management group in the world, and the biggest publicly traded group outside of the US. with by assets, reaching almost £350bn as a result of the deal.

The deal was orginally announced in November 2013, when Aberdeen said it would be creating 131.8m new shares to be given to Lloyds, giving the bank a 9.9 per cent stake in Aberdeen.

The price for the acquisition was therefore £550m based on a share price for Aberdeen of 420p, though its shares have since fallen and the price is currently 375p.

The deal also included a potential extra £100m payable by Aberdeen to Lloyds based on a series of five-year performance-dependent payments.

Aberdeen Asset Management PLC is a global investment management group, managing assets for both institutional and retail clients from offices around the world.


We've been growing steadily, both through acquisitions and by expanding our own business, since we started out in 1983. We're based in Aberdeen, Scotland, and have been since the day we began.



Aberdeen Asset Management Investor Relations
Current share prices, announcements and a whole range of resources for institutions and private investors around the world



3:2 Share split September 2005
16/09/05 Share price £1.005p
24/03/14 Share price £3.665p
PE: 13.85
Dividend Yield: 4.35%
52 week high: £5.00p on 31-Dec-13
52 week low: £3.48p on 28-Aug-13

24/03/14
Today I purchased Aberdeen shares, priced at £3.638p as a core component of my long-term investment portfolio. I am invested for capital preservation and long-term rule of 72 appreciation in growth of my investment. As this suits my conservative approach.

28/03/14
Tuesday 1 April Aberdeen Asset Management (ADN) will release a trading update for the two months to 28 February, following regulatory approval for its acquisition of Scottish Widows Investment Partnership (SWIP).

Analysts' expectations: "For the two months, we expect assets under management of £188 billion, down 3% from its first quarter. Of this we expect -£2.3 billion in market movements and -£2.6 billion in net outflows," predicts UBS analyst Arnaud Giblat.

"We expect a positive message to be reiterated on SWIP, and at 9.9 times 2014 enterprise value/net operating profit after tax, valuation looks cheap given Aberdeen should be well-positioned if appetite returns for emerging market equities," he adds.

Giblat has a 'buy' rating on the stock and a target price of 470p.

Valuation: With a market cap of £4.4 billion, Aberdeen is trading on a 2014 P/E multiple of 11.86 times and an EV/EBITDA ratio of 8.41 times.
[...]

[...]

1/04/14
ABERDEEN ASSET MANAGEMENT PLC TRADING UPDATE
Martin Gilbert, Chief Executive of Aberdeen, commented:
"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.”



6/05/14
Interim highlights
Revenue £503.5 million (-2%)
• Underlying profit before tax £217.0 million (-3%)
• Underlying earnings per share 14.3p (-4%)
• Dividend per share 6.75p (+12.5%)
• Operating margin 43.0% (2013: 43.8%)
• AuM £324.5 billion



19/09/14
SCOTLAND VOTES NO
Scotland has voted against becoming an independent country by a projected 55% to 45%.


29/09/14
ABERDEEN ASSET MANAGEMENT PLC TRADING UPDATE


01/12/14
FULL YEAR HIGHLIGHTS

· Net revenue 4% higher at £1,117.6 million (2013: £1,078.5 million)
· Underlying profit before tax increased by 2% to £490.3 million (2013: £482.7 million)
· 4% decrease in underlying diluted earnings per share to 31.1p (2013: 32.5p)
· Final dividend of 11.25p per share (2013: 10.0p), making 18.0p for the full year (2013: 16.0p)
· Cash increased by 53% to £653.9 million (2013: £426.6 million)
· Assets under management (AuM) increased by 62% to £324.4 billion (2013: £200.4 billion) following acquisition of SWIP




3/02/15
TRADING STATEMENT
Highlights

· Assets under management £323.3 billion (30 September 2014: £324.4 billion)

· Gross inflows in the quarter of £11.3 billion

· Following a more difficult month in December, new business flows have returned to more normal levels in January

· SWIP integration continues to progress in line with plan

· Continued discipline in managing costs and margins






FLAG COUNTER



VISITORS

[seekerofvalue] 24/3/2014 14:36

THREAD NOT BEING USED DUE TO HEADER ERROR.

[calvin1947] 21/3/2014 01:47

Swip deal passes Regulators.

Regulators clear Scottish Widows Investment Partnership sale
The deal will make Aberdeen Asset Management the biggest listed fund manager in Europe
Regulators have cleared Aberdeen Asset Management's proposed £660m acquisition of Scottish Widows Investment Partnership (SWIP) from Lloyds Banking Group.
The deal is now expected to complete on 31 March, following consent from the Financial Conduct Authority.
The sale of SWIP does not include the banking group's life, pensions and investment business, Scottish Widows.
Aberdeen is paying mostly shares for the deal.
It will hand Lloyds a 9.9% stake, worth about £560m, and manage assets on behalf of Lloyds as part of the deal.
Aberdeen will also pay Lloyds up to £100m in five years' time, depending on the performance of these assets.
Aberdeen chief executive Martin Gilbert said: "We will continue to work closely with SWIP and Lloyds Banking Group to ensure a smooth completion process.
"The way we have already worked together to develop a structured integration plan is very encouraging and means that the migration process will begin very shortly after completion.
"This co-operation confirms my belief that the combination of the two businesses and our strategic relationship with Lloyds will be of great long-term benefit to our shareholders and clients, whom I would like to thank for their continued support throughout this process."
Aberdeen will add £136bn in assets to its books in the deal, making it the biggest listed fund manager in Europe with assets under management of about £340bn

[danny murphy] 09/3/2014 08:53

Does anyone know when the swip deal is due for completion???

[buffetteer] 04/3/2014 08:54

averaged down yesterday at 375p. With the earnings increases to come from an integrated SWIP these are too cheap.

[rathlindri] 04/3/2014 08:37

Good luck Danny, and welcome

[danny murphy] 04/3/2014 08:35

I am in at 380p.

[allch2] 25/2/2014 08:38

Alas not so good from Ashmore

[philo124] 25/2/2014 08:34

But not at ASHM.

[bigboots] 25/2/2014 08:33

Great figures from ST JAMES, should get a read across here

[its the oxman] 18/2/2014 15:44

Suspect there may be those interested in keeping share price below the acquisition reference price of 420p for some reason as it does look strangely weak. Then deal completes and shares rally.

[40t] 08/2/2014 12:51

An exciting stock, but it's worth bearing in mind the pressure on margins in this industry, resulting from explicit pricing due to the removal of commission and the fact that distribution of open ended funds is largely in the hands of the platform operators, who in many cases have used their strong negotiating position to minimise annual management charges in order to maximise the amount they can get away with charging. That's also had a knock-on effect on the cost of closed end funds, which - in cases where fees haven't already been cut - can now look expensive compared to the AMC of the open ended equivalent.

[philo124] 05/2/2014 19:54

Agreed; similar current hit on ASHM.

[m1das_touch] 05/2/2014 18:47

I hold these for the long-term in my SIPP at an average price of 435p - great company with strong and growing profits / dividend. Yes a high beta share with large emerging markets exposure, so volatility to be expected. But just as it falls faster than the market, it also rises faster than the market - so as emerging markets bottom out and wider markets bounce back, this should re-rate strongly and quickly. It usually does!

Also agree with the above post that the SWIP acquisition will help to reduce EM bias, and will catapult Aberdeen to be a truly global asset manager (I think I remember hearing they'll be the biggest in Europe once the acquisition completes)

I also took out a shorter term spread-bet (long) at 394p...hoping to bank some quick profits there as the share-price rebounds in the coming days / weeks.

[pearlfisher] 05/2/2014 17:33

Buffetteer - Like you, I bought a few at around 450p and again at 400p. ADN has been a long term investment for me and I started buying in 2009 at around 200p. I believe their investment strategy is right and they have been a good performer for me although the price can be a bit volatile. Unfortunately, sentiment is against emerging markets at the moment and ADN's investment policy is heavily biased to emerging markets although their acquisition of SWIP is expected to reduce this bias somewhat and has received a lot of positive comment in the press. At less than 400p ADN is a buy in my opinion and I would have added a few at the recent low around 390p if I hadn't bought already.

[leocadia] 05/2/2014 16:58

Selftrade has them as O/W with a target price of £5.14 - 30% premium to today's close. I'm hanging on and buying in the dips

[buffetteer] 05/2/2014 16:17

Bought last week at 450p,then 440p,later 387p.Trying to average down as much as possible .Think the short term will continue to be v lumpy .Did you see Crispin Odey was shorting ADN (not good) but maybe leaves a good entry price for what should be a good buy over a year or so .
Anybody agree or should one be sitting on the sidelines ?