Aberdeen sees £1.5bn outflows from property fund

Aberdeen Gilbert Martin Gilbert 700x450

Aberdeen Asset Management has seen £8.9bn of net outflows in the past quarter, including £1.5bn coming out of its property funds.

In a trading update, published today, the asset manager saw the largest net outflows from its equities division, with £2.9bn leaving the strategies. Multi-asset followed with £1.7bn of net outflows in the three months to the end of June, while property products saw £1.5bn of net outflows.

However, the asset manager offset the losses with £9bn of market and performance gains. In addition, the asset manager profited from weakened sterling post-Brexit, with £8.5bn of gains from exchange rate movements in the quarter.

Total asset rose in the quarter, from £292.8bn at the end of March to £301.4bn at the end of June.

Martin Gilbert, chief executive of Aberdeen, says: “Currency, exposure to a broad mix of assets and good investment performance outweighed the net outflows the business experienced this quarter.

“There are many uncertainties out there, including the shape of the UK’s future relationship with the EU, which might undermine market confidence. We remain well placed to take advantage, on behalf of our clients, of any weakness and will continue to focus on fundamentals rather than be distracted by market noise.”

The asset manager also highlighted that while Brexit uncertainty remains, it has bases in the UK and in Luxembourg, making it well-prepared for any outcome.

Speaking on the property fund outflows, Gilbert says that the concerns about property valuations post-Brexit were “exacerbated following the decision by competitor funds to suspend dealing”.

“We expect some continuing volatility in UK and European equity markets as the political negotiations around Brexit proceed. However, broader equity markets have been reasonably resilient, as have other asset classes. Against this backdrop, our commitment to controlling costs and driving efficiencies in our business is undiminished.”