Major client redemptions lead £10bn outflows at Aberdeen

Martin Gilbert Aberdeen

Aberdeen Asset Management has seen its assets under management drop as a sovereign wealth fund and UK wealth manager lead outflows of £10.5bn.

The two clients withdrew a combined £4.2bn from active equity strategies.

It also suffered a £2.2bn hit to AUM from the rationalisation of its US fixed income business.

The company’s assets now sit at £302.7bn compared to £312.1bn at the end of the last quarter.

The net outflows were partially offset by £3.3bn asset appreciation with fixed income the only asset range to take a hit from market performance and currency losing £900m.

Overall assets grew in the alternative and quant strategies while multi asset AUM remained flat. However, positive performance was unable to offset outflows in equity and property strategies.

Chief executive Martin Gilbert says: “Investor sentiment had been improving steadily in the early part of the quarter, but stalled following the US presidential election result with investors putting asset allocation decisions on hold. Encouragingly, despite the market volatility our equity strategies produced strong returns for the year.”

“While growing interest in a number of our strategies is likely to continue to be masked, in the short-term, by significant withdrawals by a small number of clients, I am encouraged by the progress being made.” 

In the US fixed income business the company is withdrawing from US core and core-plus mandates to focus on US credit and total return strategies. It expects this move to deliver a further £1bn hit in the early part of 2017.