Aberdeen sees £32.8bn in outflows

Aberdeen Gilbert Martin Gilbert 700x450Aberdeen Asset Management has seen outflows for the 14th consecutive quarter despite “healthy net inflows” to the firm’s emerging markets equities at the end of the year.

In its full year results, published today, the emerging market focused company reported £7.2bn outflows during the three months to September, following £8.9bn of net assets outflows in the previous quarter. Net outflows for the full year were £32.8bn.

The firm predicts it will continue to see outflows in the first quarter of 2017 from “two large blocks of assets under management”.

However, newly-appointed chairman Simon Troughton says it has been “pleasing” to see more positive sentiment from investors towards emerging markets throughout the year, as the asset manager saw “healthy net inflows to our emerging markets equities in the final quarter” despite passive funds in the industry getting more traction for the asset class.

The firm saw net inflows from emerging markets of £590m in the three months to September, following a £552m outflows in the previous quarter. Total outflows from the region for the year were £825m.

However, equity outflows remained consistent from the Asia Pacific region with £773m in the last quarter and £378m in the previous quarter for a total £4.8bn for the whole year.

Aberdeen only saw positive flows for the year coming from US equities, with £486m total inflows for the year and £145m inflows for the three months to September.

Meanwhile, profits before tax at the asset manager fell by almost a third to £352.7m in the year to 30 September, compared to £491.6m in the previous year.

However, Aberdeen’s total assets under management have grown 10 per cent to £312.1bn due to the weaker sterling.

Aberdeen chief executive Martin Gilbert says: “These financial results reflect, in part, our diversified business model and strict cost management. Economic and political newsflow has weighed on investor sentiment and as expected has led to further outflows from our business.

“Structural themes including fee pressure, technological innovation and greater regulatory requirements are a focus for all asset managers.”