Aberdeen Asset Management was hit by £19.5bn in gross outflows in the second quarter of the year as investors continued to back away from emerging markets.
The manager saw gross inflows of £9.6bn, leaving net outflows of £9.9bn for the quarter, higher than the £8.8bn seen in the same quarter last year.
Aberdeen chief executive Martin Gilbert says the manager was hit by FX movements, while “macro-economic factors and investor sentiment towards Asia and emerging markets continued to weigh on equity flows”.
However, the company is attempting to diversify away from its core of emerging market strategies. In the past quarter it bought alternatives manager Flag Capital Management and the remaining stake in Aberdeen SVG Private Equity.
”Our strategy for diversification has progressed further during the period,” adds Gilbert.
“The majority of the reduction in [assets] over the period was due to FX and market movements, which reversed much of the beneficial movements from the previous six months.”
The firm’s total assets under management now stand at £307.3bn, down from £330.6bn in the previous quarter.
Gilbert says: “Markets remain susceptible to policy-led economic factors, although we have seen some recovery in mid-July. Our focus continues to be on investing for long term returns, as we believe this is the approach which will serve our clients best.”