Aberdeen struck by outflows in tough quarter

Slow down-signAberdeen Asset Management sustained a 1% fall in assets in the quarter ending June 30, as markets moved against the well-known emerging market investor.

The firm had net outflows of £3.4 billion (€3.9 billion) in the quarter, £2.5 billion of which came in June alone, on top of losses of more than £10 billion due to market movements.

The company says volatile market conditions were to blame for the declines. Emerging market funds, for which Aberdeen is famous, have been particularly hard hit in recent weeks.

Aberdeen has previously taken measures to limit flows to its global emerging market funds.

Martin Gilbert, chief executive of Aberdeen, says the results were “resilient”.

“Our disciplined investment approach meant a broad range of our products attracted interest from investors although towards the end of the period outflows increased due to heightened market turbulence,” he says.

Aberdeen's results were buoyed by a gain of £11 billion in assets from completing two acquisitions. New York-based Artio Global Investors, which Aberdeen bought for around $180 million (€136 million), brought with it £5.9 billion of fixed income and £0.8 billion of international equity assets. The acquisition has been praised because it extends Aberdeen's distribution abilities in the United States.

UK-based SVG Advisers, in which Aberdeen took a majority stake for £17.5 million, came with £4.3 billion in private equity assets.

As of June 30, Aberdeen had £209.6 billion under management.

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