Aberdeen sees outflows amidst ‘cyclical adjustments’ in EM

Falling profitsAberdeen saw its assets under management fall £7.9 billion (€9.3 billion) in two months owing to withdrawals, market performance and exchange movements.

Assets that the FTSE-listed company manages were down to £201.7 billion at August 31 from £209.6 billion at the end of June.

Investors took £1.2 billion out of equities, fixed income, the Aberdeen solutions range and money market funds.

With £0.5 billion of outflows, the Aberdeen solutions range was hit worst, followed by fixed income funds, which suffered £0.4 billion of outflows.

Some £3.7 billion were lost as a result of market performance and another £3 billion as a result of exchange movements.

In its pre-close statement, Aberdeen says there was considerable volatility in global markets during the summer and investor sentiment has been muted as markets wait for signs of a decisive improvement in economic conditions. This was particularly the case in emerging markets.

Martin Gilbert, chief executive of the FTSE 100 company, says Aberdeen and its funds are well placed to navigate the difficult market environment ahead to deliver strong returns to its clients and investors.

“While emerging markets have seen some cyclical adjustments in recent months, their structural growth potential remains unchallenged,” Gilbert says. “The long-term attractions of the companies and countries in which we invest are compelling.”

Jonathan Goslin, financials analyst at Edison, says despite outflows continuing into July and August, Aberdeen has indicated its full year results will be towards the top end of consensus due to tight cost control and a recent shift into higher margin products.

“We believe Aberdeen will be able to return to generating net inflows due to its strong long-term investment performance, diversified product range and broad distribution network,” Goslin adds.

©2013 funds europe