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Article Excerpt
Original Source: FD (FAIR DISCLOSURE) WIRE
MARTIN GILBERT, CEO, ABERDEEN ASSET MANAGEMENT PLC: Morning everyone. Welcome to the analysts' conference and I'd also like to welcome all those that are listening on the webcast as well.
I'll start off with a few slides and pass over to my colleague Bill Rattray. Another year of strong organic growth, clean pre-tax up 18% to GBP90 -- almost GBP95 -- GBP94.3, clean earnings per share up 24% to just over 11p, dividends up 25% to 5.5p and assets under management up 35% to GBP95.3 billion. And since then part of the GBP100 billion market at the end of October helped buy some well planned acquisitions and also inflows from new business and market movement.
Core operating margins, again Bill will come back to these later. Again an improvement of just over 1% in fund management, property showing a good increase of almost 4%, in fact 4%, and then the Group showing 1.7% increase in operating margin over the last year. Record fund flows, we've had another very, very good year, both diversified by client and by product, and we'll come back to analyze it a bit more in detail. But GBP8.7 billion of net new business funded, as it says there, up 74%, GBP3.1 billion awarded, but not funded at the year end.
And just let me remind you that means that we've won that at September 30, but not funded, and against GBP1 billion of that at the following year end. So to get a true figure you need to add the GBP8.7 billion, the GBP3.1 billion and then deduct GBP1 billion for the actual business won during the year. And that's well diversified across equities, fixed income and property and increasingly international and diversified client base. Again come back to that in the presentation.
Three infill acquisitions Deutsche Australia, really bought as I'm sure you all know to complete what I would term the old Morgan Grenfell fixed income empire. We bought Philadelphia, London and then obviously Sydney completed that business. Glasgow consolidation deal obviously of a Scottish asset manager, and then the purchase of the US equity business from Nationwide Financial Services, better known I'm sure to you all as Gartmore US. Again that takes us into the mutual fund market which is a market we've been wanting to get into and strengthens both our US capability and as I say, our distribution.
Temporary soft close to certain segregated fixed income strategies and I hope it's more temporary than Asia has been, which has now been closed for two years. And obviously Asia-Pacific equities performance also closed, but our investments style has lagged the momentum driven markets over the last year. And again I'll come back to that and show you some figures of that in the presentation.
This is a slide we use internally to show the old Aberdeen, the old, what I would term, the Deutsche Asset Management business and the old Aberdeen Property Investors amalgamating the equity business of Aberdeen, the fixed income business of Deutsche and the property business into one what we call the new Aberdeen international. Significant presence in the three major time zones, complete range of asset competencies, integrated distribution, very important that, integrated fixed, integrating property and US and Australia. So really Aberdeen has changed in nature really over the last two, three years into what we term the new Aberdeen.
As you can see here a very rapid rise in assets under management largely due to the merger with the Deutsche fixed income business, and obviously the very, very strong growth in net assets over that period. It takes us through the GBP100 billion mark and very importantly the $200 billion mark. And these are the sort of figures that people give you that you really need to be, almost to be on in the global asset management arena. It may of course only be temporary that we're through these marks, but let's hope not.
Again assets by type of mandate; we've given you this figure before. On this we split out multi-asset as a separate asset class, and just to remind you that multi-asset is a mixture of fixed property and equities, so further analyses down. But as you see here fixed 46%, multi-assets 7.5%, property going up a full percentage point and equities going up 2 percentage points largely because of market movement. Again here assets by client type as you can see, well diversified in the institutional space and even the open ended funds, and even the closed end funds, are largely owned by institutions rather than retail. So we are basically an institutional asset manager.
And then obviously by client domicile. As you see here only 38% of our clients are based here in the UK, so we've become a much more international group. The Americas 20% and Europe ex the UK 25%, Middle East also a very important 6% and of course Asia-Pac 10%. Again here we give you a breakdown of the type of equity and fixed income assets we have; equity is still dominated by Asia-Pacific. We are still regarded as basically an Asia-Pacific manager, but if you'd looked at this three, four years ago it would have been about 80% Asia-Pacific. And again on the fixed income side, well diversified between the UK and US and now obviously a growing Asia-Pac business and a growing European business and a good growing global business as you'll see from the net sales.
What we've attempted to do on this slide is analyze out the net new business over the last year including the net sales and obviously the pipeline. And as you can see very good results from all three divisions. So equities GBP3.6 billion, fixed GBP6.5 billion, property GBP2.7 billion and multi-asset a net outflow of GBP1 billion, which is probably a lot less than we thought it would be if we had to predict that figure last year. And in fact the bulk of that is just one client coming out of, I think, about GBP900 million. So I think pretty good figures again on the multi-asset business and showing net inflows of about GBP12 billion.
Again as you've heard me say in the past if we'd looked at...
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