Aberdeen Asset Management sees emerging market flows dip

Graph downAberdeen Asset Management saw net equity outflows in the three months to the end of 2014 after investors moved money away from emerging markets in December.

Asia Pacific and global equities attracted net inflows for the quarter, but the December outflow from emerging markets partly led to overall assets under management falling slightly compared to the previous quarter, to land at £323.3 billion (€428.7 billion).

Aberdeen says that emerging market backdrop was tough overall, but particularly in December as investor sentiment towards emerging markets weakened.

When the FTSE 100 asset manager released its annual results for the 12 months to September 30, 2014, last year, the firm's chief executive, Martin Gilbert, said outflows from emerging market products were reducing.

Fixed income also saw net outflows of £1.5 billion in the latest quarter, mainly from lower margin strategies, though emerging market debt also experienced a drop off in demand as investors' appetite for risk waned.

Aberdeen solutions, which offers alternative sources of returns for clients, saw mixed flows with outflows predominately from multi-asset and some expected structural outflow from the closed insurance book acquired with Scottish Widows Investment Partnership (Swip).

The property division remained stable, and the Swip open-end property fund, rebranded as Aberdeen Property Trust, continued to attract net inflows. Aberdeen says the integration of Swip is on track.

The firm also says it expects global markets and demand for investment products to continue to be volatile in 2015.

Gilbert says that the recent quarter can be considered in two parts, with October and November showing encouraging overall flows in line with the previous quarter, while December was a less positive reminder that investor sentiment remains fragile.

"Despite this and ongoing concerns about Europe and elsewhere, Aberdeen is in good shape," he says. "Importantly we have a strong balance sheet, a global client base and a wide range of capabilities to meet the needs of investors."

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