Aberdeen Asset Management plc (ADN) is a newly promoted FTSE 100 global investment management group. ADNs assets under management continue to grow (£184.7m, up 9% over the last six months) and pre tax profits are forecast to grow by approximately 35%. ADN currently trades on a forward PE of 13.8. There is little debt, a decent dividend (3.2%) and excellent cash generation and once again ADN meets the same criteria as the rest of my portfolio.
ADNs share price has been trending upwards strongly over the last few years and its more recent performance has also been strong.
There is always the risk of a pullback and the shares fell back not long after my purchase. But just like Shire I am looking to add some larger caps to my portfolio and decided to buy ADN on weakness (although this is before the European markets moved sharply lower later in the morning). My investment portfolio is “patient money” and the dividend means that I am being paid to wait (patiently).
I am mindful that we could see the markets slump over the summer and I plan to think about when to hedge my portfolio should we see a slump.