Aberdeen's AuM declines despite net new business

DealAberdeen Asset Management saw net new business flows of £300 million (€386 million) in the second quarter, but due to negative market movements its assets under management declined 1%, according to an interim financial statement.

The firm attracted £2.5 billion of net new money to its equity products in the three months, bucking a wider trend that has seen some investors sell equities in favour of lower risk assets. However, Aberdeen had net outflows from its fixed income, money market and “solutions” products. The company's emerging market debt funds were an exception and continued to “attract steady net inflows”, said the firm.

The firm's assets under management now stand at £182.7 billion, compared with £184.7 billion as of 31 March.

Aberdeen said it would continue to focus its distribution efforts on the United States and Europe, and will open an office in New York later this year. The firm said it expected investors to seek global products and increase their use of alternatives.

Martin Gilbert, chief executive of Aberdeen, said it had been a successful quarter, “despite the global economic uncertainties and subdued conditions in the world’s financial markets”.

Aberdeen's interim statement follows quarterly results from BlackRock, which showed that the fund giant's assets under management declined 3% in the second quarter to $3.56 trillion (€2.9 trillion).

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