Aberdeen says clients “more comfortable” with EM

A weaker sterling following the Brexit vote helped Aberdeen Asset Management achieve positive investment performance by offsetting outflows, the company said. Aberdeen, which has seen some clients exit from emerging markets in recent months and more recently a Brexit-exposed UK property fund, saw its assets under management (AUM) rise to £301.4 billion (€359.7 billion) from just under £293 billion in the previous quarter. However, in the nine months to June 30, Aberdeen saw £25.6 billion of net ouflows, according to a quarterly trading update today. Aberdeen, a noted emerging markets investor, said the weakening of sterling against most major currencies contributed to the AuM increase. “Currency, exposure to a broad mix of assets and good investment performance outweighed the net outflows the business experienced this quarter,” Martin Gilbert, chief executive, said. Outflows for the quarter were £8.9 billion, but assets appreciated by £17.5 billion. The company said net outflows from equities showed a “small improvement” on the previous quarter, “partly reflecting investors’ comfort with their current exposure to emerging markets”. Markets showed a “strong recovery” after the market volatility in the last week of June when investors reacted to the result of the UK referendum on EU membership. “We expect some continuing volatility in UK and European equity markets as the political negotiations around Brexit proceed. However, broader equity markets have been reasonably resilient, as have other asset classes,” Aberdeen said. ©2016 funds europe

Sponsored Profiles

SPONSORED FEATURE: Alternative thinking

Mar 16, 2017

Portfolio Manager Davide Cataldo discusses the results of the Pioneer Investments’ survey on liquid alternatives and how investors can be encouraged to increase their allocation.

SPONSORED FEATURE: Interest rate risk hedging: Swapping to other options

Mar 16, 2017

Heightened margin requirements for cleared and uncleared OTC derivatives pose a challenge for legitimate hedging activities and are driving financial institutions to explore alternative hedging...

SPONSORED FEATURE: Why blockchain could be the fund industry’s next Ford Model T

Mar 16, 2017

Blockchain aims to radically change the way investors can access funds, says Olivier Portenseigne, Managing Director and Chief Commercial Officer of Fundsquare.

SPONSORED FEATURE: Open architecture: In need of protection

Mar 16, 2017

Greater efficiency must be embraced to ensure regulatory changes do not destroy choice for fund buyers, says Bernard Tancré of Clearstream.

Executive Interviews

CEO INTERVIEW: Munro gains three-year track record

Mar 16, 2017

Aviva Investors’ annual results this month were the third set since Euan Munro took over as CEO. Nick Fitzpatrick speaks to him about the ‘Aims’ fund at the heart of the firm’s outcome strategy.

DISTRIBUTION INTERVIEW: Tales of the unexpected

Mar 16, 2017

Laurence Terryn, a fund selector at Candriam, tells David Stevenson how the twists and turns of the past year’s macro environment flavoured her approach to fund selection.



Mar 07, 2017

Funds Europe speaks to leading Luxembourg industry figures about the growing regulatory demands on asset servicers and how to remain profitable in spite of major investments in technology.

SEC LENDING ROUNDTABLE: Both a borrower and a lender be

Jan 11, 2017

Industry heavyweights, including agent lenders, discuss issues affecting the securities lending sector such as regulation and the types of collateral being used.