Aberdeen falls out of FTSE 100

DeclineAberdeen Asset Management is to drop out of the FTSE 100 following a testing 18 months for the emerging markets specialist.

Since the end of 2014, the firm has experienced net outflows of £40.7 billion (€52.6 billion) as investors increasingly underweighted emerging markets. Aberdeen has seen 11 consecutive quarters of outflows from its funds.

Aberdeen’s demotion from the index was widely predicted by competitors, including BlackRock, which shorted the stock earlier this week in response. The firm was one of the most shorted FTSE 100 stocks in the opening trading session of 2016, according to Markit data.

Aberdeen’s reliance on emerging markets saw it experience a £9.1 billion outflow over the final quarter of 2015.

Last month, a report issued by wealth manager Tilney Bestinvest identifying consistently underperforming UK funds featured 11 Aberdeen funds – the most of any asset management group.

Aberdeen will officially join the FTSE 250 on March 21.

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