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Aberdeen Asset Management has posted its 15th consecutive quarter of net outflows, with the Scottish fund house suffering from heightened investor aversion to emerging markets following Donald Trump’s election as US president.
The UK-listed fund house, which was last year demoted from the FTSE 100 index of Britain’s biggest companies, registered £10.5bn of net outflows in the three months to the end of December.
This has brought the tally of outflows from Aberdeen’s funds to more than £100bn since the cycle of redemptions began nearly four years ago, amid growing investor uncertainty about emerging market growth. More than a third of Aberdeen’s equity assets are invested in the developing world.
Emerging markets have experienced increased pressure following Mr Trump’s election last November, which has raised the likelihood of an increase in US interest rates that could hurt emerging market asset prices.
Martin Gilbert, chief executive of Aberdeen, said: “Investor sentiment had been improving steadily in the early part of the quarter, but stalled following the US presidential election result with investors putting asset allocation decisions on hold. Encouragingly, despite the market volatility, our equity strategies produced strong returns for the year.”
Mr Gilbert added that investor interest in some of the company’s strategies had been “masked” by large withdrawals from a small number of clients in the latest quarter.
“Overall Aberdeen remains in good shape, we have a strong balance sheet, a global client base and wide range of capabilities to meet the needs of investors,” he said.
The company’s total assets under management fell by nearly £10bn in the three months to the end of December to £303bn, which the company blamed partly on its decision to scale back its US business.
Aberdeen has been forced to cut costs by reducing headcount and freezing salaries for high earners as a result of the withdrawals from its clients.
Ashmore, the FTSE 250 asset manager that focuses on emerging market debt, said last month it had also seen hefty outflows totaling $700m in the three months to the end of December.
The London-headquartered fund house suffered a 5 per cent fall in its assets under management after losing $1.7bn because of poor performance by its funds, on top of investor redemptions.