Aberdeen interim profits tumble

Arrow downAberdeen Asset Management’s profits have halved in a year, as investors continue to retreat from emerging markets, the firm’s results for the six months to March 31 2016 reveal.

In total, investors have withdrawn £38.2 billion (€48 billion) from the firm’s funds since October last year, causing pre-tax profits to drop to £98.8 million from £185.4 million a year prior.

Martin Gilbert, chief executive of Aberdeen Asset Management, said the results reflected the challenging conditions which have prevailed in emerging market over the past three years.

Chairman Roger Cornick added that the firm remained vulnerable to further outflows over the next few quarters, as oil and commodity prices appear set to stagnate at best, and fall further at worst.

Aberdeen has endured a troubled year to date. In March, the firm was demoted from the FTSE 100 index.

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

Aberdeen currently manages assets of £292.8 billion, down from £330.6 billion a year ago – although the current total is still an improvement on the £283.7 billion recorded at year-end 2015.

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