Aberdeen suffers sizeable outflows in challenging quarter

OutflowsAberdeen Asset Management saw net outflows of £9.1 billion (€12 billion) over the final quarter of 2015, as the firm contended with a slowdown in emerging markets and commodities, and significant withdrawals by sovereign wealth funds, according to its latest trading update.

However, assets under management rose by about £7 billion to £290.6 billion over the quarter, once market movements and £8.5 billion of acquired assets were added to the total.

The company stated it had identified additional cost savings beyond the £50 million worth of savings already announced and these will be implemented over the next two years.

Outflows of £6.3 billion from the firm’s equities division and £3.3 billion from Aberdeen Solutions were partially offset by modest inflows into fixed income and property arms. Aberdeen believes the longer-term potential of Asia justifies a sizeable exposure to the continent.

The company forecasts market conditions to remain difficult, with flows impacted for the remainder of 2016.

Aberdeen chief executive Martin Gilbert said: "During the quarter we added to the business further, completing acquisitions of Arden and Advance, followed by Parmenion in early January.

“Like the rest of the industry we continue to contend with the structural imbalances of the global economy and the cyclical slowdown in emerging markets, as well as the impact of falling oil and commodity prices. Despite the day-to-day fluctuations in investor sentiment we remain focussed on those issues that we can control.”

Aberdeen has a number of UK-domiciled funds with underperformance of three years that were listed in a wealth managers’ report this week.

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