Aberdeen hit by £3.4bn outflow


Aberdeen Asset Management has witnessed net outflows of £3.4bn during its financial third quarter, with more than a quarter coming from its emerging market funds.

In its interim management statement for the nine months ending 30 June 2013, the asset management house reports inflows of £1.6bn between April and the end of June – which were offset by £2.6bn in outflows.

The results also show that £900m, or 26.4 per cent, of outflows came from its popular global emerging markets equity range, which includes the Aberdeen Emerging Markets, Global Emerging Markets and Global Emerging Markets Smaller Companies funds.

These funds were soft-closed earlier in the year with the imposition of a 2 per cent initial fee, as the firm sought to stem flows and limit the portfolios’ size.

In addition, the company saw £300m in outflows from Artio, its newly acquired US fixed income business.

The outflows, when combined with negative market movements, performance and foreign exchange effects, caused Aberdeen’s assets under management to falls from £124.3bn to £118bn over the three-month period.

Aberdeen chief executive Martin Gilbert says: “Our disciplined investment approach meant a broad range of our products attracted interest from investors although towards the end of the period outflows increased due to heightened market turbulence.

“The net outflow also reflects the deliberate steps we have taken to manage the capacity of our global emerging market equity funds for the benefit of existing clients.”