ABERDEEN Asset Management has seen its share price slump 6.6 per cent after being hit by volatile markets and foreign exchange movements.
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Aberdeen Asset Management shares slumped to their lowest in more than a year on Thursday after the money manager said investors withdrew 9.9 billion pounds ($15 billion) from its funds in the quarter through June.
Shore Capital said the third-quarter update “does not make for pleasant reading” and “indicates a worrying acceleration in net outflows”.
New business also struggled as gross inflows of £9.6bn, were more than more than offset by net outflows of £19.5bn.
“Market and foreign exchange movements together with low-margin outflows from certain fixed income and solutions clients accounted for a large proportion of the decline in assets under management”.
Chief executive Martin Gilbert vowed to maintain Aberdeen’s emerging markets focus, even though he admitted: “It’s painful watching those outflows”. He argued: “The long-term investment case for Asia and emerging markets is unchanged and we believe that committed investors will be rewarded over time”.
Looking ahead, AAM said while “markets remain susceptible to policy-led economic factors”, it had seen “some recovery in mid-July”.
AAM said market conditions had “remained difficult” in the last quarter, notably in June, but added it expects some assets lost in the quarter will be “reinvested in the coming period”.
EMEA (Europe, Middle East and Africa) investors’ strong appetite for gaining exposure to specialist investment strategies is driving Nikko Asset Management to expand its range of UCITS (Undertakings for Collective Investment in Transferable Securities) funds, the company announced today. The majority of the fall in assets under management was down to foreign exchange and market movements, it reiterated.
Fixed income net outflows rose to GBP1.4 billion, including some seasonal outflows from low-margin SWIP liquidity funds.
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Breaking it down by asset class, on the equities front, the outflows were mainly from Asia Pacific and global equities, which Aberdeen said was largely due to withdrawals from a small number of institutional mandates.
