Around this time last year Aberdeen Asset Management made its debut in the FTSE 100. The business model is fairly simple - increase assets under management (AUM), keep a tight control on costs and grow profits.
Most small investors would be better off investing via low cost trackers like Vanguard, however, no matter how much this message is repeated, there will always be investors ready to be seduced by the advertising of the financial services industry. So long as there is a demand for their services, the likes of Schroders, Henderson, F&C and Aberdeen can grow profits and therefore can themselves be a decent investment.
Aberdeen have a good range of funds and investment trusts, many of which have produced consistently good returns - some I hold are Murray International, Dunedin Income Growth and Murray Income.
They has been on my watch list as a potential purchase for quite a while and yesterday, I decided to add a ‘half’ holding to my portfolio at the price of 425p (cue for sp fall!). With new additions, I generally look to start off with a smaller initial stake and add to it later based on results, dividend increases and share price movement.
If the markets continue to improve, I would hope to see the likes of Aberdeen make further progress as they should attract more inflow of new money and funds continue to increase net assets. Half year results are expected end April.