ABERDEEN, Scotland — Most of the fixed-income clients Aberdeen Asset Management PLC gained from buying London-based Deutsche Asset Management Ltd. have remained loyal to the buyer, but a steady exodus of business continues on the equity front.
Gary Marshall, group sales and marketing director, and the key person overseeing the integration of the two units, admits AAM executives fully expect an ongoing "flow of clients leaving." So far, retention has been predictably more difficult on the U.K. equities and multiasset, or balanced, front because of personnel departures and poor investment performance over the past several years. Mr. Marshall declined to comment on net outflows since the acquisition of the U.K.-based fixed-income, institutional equity, global equity, multiasset and DWS retail operation was completed Sept. 30. As of June 30, the units accounted for £34.3 billion ($59.8 billion).
The takeover of the U.S. fixed-income division, which has £12 billion in assets, should be completed at the end of this month.
Mr. Marshall would not say how many clients, or how much in assets, the firm has lost since the deal was announced in July.
The final price tag for acquisition — with an estimated maximum of £270 million — hinges upon the amount of equity and multiasset business DeAM retains by June 30, 2006.
The acquisition, described by analysts and others in the wealth management industry as one of the most "prestigious block of assets" to go up for sale in Europe this year, could boost assets managed by Scotland-based AAM to £74.4 billion from about £28.1 billion, according to estimated figures based on DeAM's assets under management as of June 30.
About 60% of the £46.3 billion AAM is picking up from DeAM is fixed income.
"We're hoping to gain a much more balanced business between equities and bonds," Mr. Marshall said. "We're currently very much on the equities side, and (DeAM) has reasonable exposure in the fixed-interest side, so this will tilt the balance back."
"It is not expected that (AAM) will lose a significant volume" in fixed income, said Katrina Preston, analyst at brokerage Bridgewell Securities Ltd. who advised Aberdeen on the deal. "We factored in 10% on the pessimistic side, but I'd be surprised if it's any more than 5%."