Aberdeen hit by £20bn outflows

Aberdeen was hit by £20.4bn outflows from its business in the year to 30 September 2014, its annual accounts have revealed.

The asset manager saw some £16bn outflows from the Aberdeen arm of the firm along with an additional £4.4bn outflows from the Swip business it acquired from Lloyds in March.

The Aberdeen element of the firm saw a £4bn withdrawal from a single client from low margin assets and also £3.6bn outflows from fixed income products.

It adds it expects to see further outflows from the Swip business out of low margin business due to “anticipated structural reasons”.

The Aberdeen property team added £1bn in inflows during the year.

Underlying profit before tax rose 2 per cent to £490m, up from £482m in 2013 whilst assets rose 62 per cent to £324bn from £200bn through the acquisition of Swip.

The firm made a final dividend payout of 18p for the year, up from 16p in 2013.

Aberdeen chief executive Martin Gilbert says: “The first half of the year was particularly demanding, as investor sentiment turned sharply against emerging market economies. Recently, however, we have seen those concerns abate and outflows from our Asian and emerging market funds have moderated.

“Markets are likely to remain volatile given the uncertain economic and interest rate environment but our new financial year has started well with our broadened product range attracting interest from a range of clients. We will continue to apply our philosophy of long-term fundamental investing to meet the objectives of our clients.”