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Aberdeen Asset Management hit by £3.4bn outflow

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Aberdeen Asset Management has witnessed net outflows of £3.4bn during its third financial quarter, with more than 25 per cent coming from its emerging market funds.

In its interim management statement for the nine months ending 30 June, 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.

This includes the £3.4bn Aberdeen Emerging Markets, £8.3bn Global Emerging Markets and £1.9bn 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 fall 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.”

Charles Stanley Direct head of investment research Ben Yearsley says: “As a business, Aberdeen’s emerging market and Asian funds are still quality investments I would back for the long-term.”

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