Cost cutting sees Aberdeen Asset Management stocks up

The share price of Aberdeen Asset Management has gone up quickly today (April 1st) after the company revealed a new range of cost-cutting measures designed to improve its position.

Stocks in the firm rose sharply on the back of the announcement it has identified a range of areas where it will be able to make significant savings in the near future.

Investors responded extremely positively to the news and the share price of Aberdeen Asset Management was one of the biggest movers on the London Stock Exchange today.

Outflows of £3.9 billion were revealed by the firm in a statement, with the company noting these were largely from its Asian and emerging market equity funds.

Aberdeen chief executive Martin Gilbert explained that the company has seen further growth in the pipeline of new business awarded, but not funded, at the end of February.

SWIP takeover

The firm recently confirmed its £550 million takeover of Scottish Widows Investment Partnership (SWIP) has gone through, strengthening its position in the UK marketplace. Aberdeen Asset Management is now one of the most dominant forces in the sector.

"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," said Mr Gilbert.

"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."

Some £4 billion in gross new business was secured by Aberdeen Asset Management in the first two months of the year and firm stated that it also has a strong pipeline.

The bullishness of the statement released translated directly into a strong growth in the share price of Aberdeen Asset Management during today's trading session. By 15:32 BST, stocks in the company were up by 8.69 per cent compared to the start of the day.

Find up to date information on the FTSE 100 and spread betting strategies at City Index