Aberdeen hit by £9.1bn in outflows

Aberdeen Gilbert Martin Gilbert 700x450

Aberdeen Asset Management saw net outflows of £9.1bn in the last three months of 2015 as the firm continues to contend with the slowdown in emerging markets.

Net outflows were down from £12.7bn in the previous quarter while gross outflows of £20bn for the last three months of the year were impacted by withdrawals by sovereign wealth funds.

Equities saw net outflows of £6.3bn, down from £7.9bn in September, as investor sentiment toward Asia and emerging markets remained weak.

But the firms believes investment in these “high growth economies” will deliver “significant returns” over the longer term.

Overall, assets under management increased slightly quarter-on-quarter, reaching £290.6bn from £283.7bn at the end of September.

Despite continued market volatility,  market and foreign exchange movements added £8.5bn to the total AUM.

The acquisitions of Arden Asset Management and Advance Emerging Capital, completed in December, added a further £7.5bn to the firm’s assets, while the acquisition of Parmenion was subsequently completed in early January.

Aberdeen chief executive Martin Gilbert says: “Like the rest of the industry we continue to contend with the structural imbalances of the global economy and the cyclical slowdown in emerging markets, as well as the impact of falling oil and commodity prices.

“Despite the day-to-day fluctuations in investor sentiment we remain focused on those issues that we can control. We are committed to our fundamental approach to investing, managing the business efficiently with a keen focus on costs and most of all striving to deliver the long-term returns that our clients and shareholders have come to expect from Aberdeen.”

Aberdeen has also announced its chairman and non-executive director Roger Cornick will retire in September.

He will be replaced by Simon Troughton, who is currently senior independent non-executive director on the firm’s board.

Cornick joined Aberdeen’s board in January 2004 and became chairman in January 2009. Troughton was also appointed senior independent non-executive director in October 2014.