Aberdeen Asset Management has blamed emerging markets for its six months interim results, which saw revenues drop 20 per cent to £483.6m.
The asset manager announced it would be making £70m of annualised cost efficiencies to be delivered in 2017.
Six-month revenues to March 2015 had been £605.2m.
Profits before tax fell 40 per cent to £162.9m compared to £270.2m over the same period.
The asset manager has also pinned its hopes on its value-based strategies returning to popularity, with chairman Roger Cornick saying the group is already seeing evidence of this.
However, Cornick added the group would still be vulnerable to outflows over the following few quarters as investors react to “difficult conditions for performance”.
Net new business for the asset manager was -£16.7bn compared to -£11.3bn a year earlier.
Assets under management were also down from £330.6bn to £292.8bn; however, the dividend per share will remain unchanged at 7.5p.
Martin Gilbert, chief executive, says the results reflect challenging conditions over the last three years, particularly in emerging markets.
Despite this, Gilbert says a strong balance sheet has allowed it to reinvest in the business, including “bolt-on acquisitions, which have added new capabilities and new client channels”.
“We have strengthened the management team with senior appointments in distribution and operations.
“Our broad product suite and global distribution platform means we are well placed to meet the long-term needs of an ever increasing number of investors around the world.”