Aberdeen Asset Management hit by emerging market outflows

Graph downAberdeen Asset Management saw a net outflow of £9.9 billion (€14.1 billion) in the three months to June 30 as investors continued to reduce exposure to Asia and emerging market equities.

Assets under management (AuM) fell from £330.6 billion at March 31, to £307.3 billion at the end of June.

Reporting the company’s latest results today, Martin Gilbert, chief executive officer, says: ““Market and FX [foreign exchange] movements, together with low-margin outflows from certain fixed income and solutions clients, accounted for a large proportion of the decline in AuM.”

He adds: “In addition, macro-economic factors and investor sentiment towards Asia and emerging markets continued to weigh on equity flows.”

Gilbert says, however, that the long-term investment case for Asia and emerging markets is “unchanged and we believe that committed investors will be rewarded over time”.

£4 billion of new commitments and mandates were awarded to Aberdeen in the quarter but had not been funded by June 30.

Saying that Aberdeen’s strategy for diversification had progressed in the quarter, the results report on the announced acquisition of Flag Capital Management and the completed purchase of Aberdeen SVG Private Equity during the three-month period.

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