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Aberdeen Asset Management warns of fragile sentiment

Martin Gilbert, Aberdeen Asset Management CEO, said December was a reminder that investor sentiment remains fragile.
Martin Gilbert, Aberdeen Asset Management CEO, said December was a reminder that investor sentiment remains fragile.

Aberdeen Asset Management suffered a small drop in funds under management in the last quarter, and said investor sentiment remained fragile.

With outflows outstripping gains in investment portfolios and foreign exchange, the firm managed £323.3 billion in the three months to December 2014, down from £324.4bn (0.34%) the previous quarter.

Net outflows from its funds increased to £4.8bn from £2.8bn as weaker investor demand for emerging market funds led to outflows in December.

Outflows during the quarter negated gains worth £1.3bn from its funds’ performance and £2.4bn from foreign exchange movements.

Aberdeen added that it was winning new business at good fee margins and remained disciplined at managing costs.

The integration of the Scottish Widows Investment Partnership business it bought in 2013 was on track, and the final cost savings were likely to be ahead of its initial expectations.

CEO Martin Gilbert said the last quarter can be considered in two parts.

“October and November were encouraging, with overall flows in line with the previous quarter and equity flows positive,” he said.

“However, December was a reminder that investor sentiment remains fragile.

“Despite this and ongoing concerns about Europe and elsewhere, Aberdeen is in good shape.

“Importantly we have a strong balance sheet, a global client base and a wide range of capabilities to meet the needs of investors.”

Aberdeen Asset Management announced that Val Rahmani has been appointed a non-executive director and will also join the innovation and risk committees.

She was a non-executive director of Canadian technology firm Teradici Corporation, CEO of US internet security software firm Damballa, and held senior management roles with IBM Corporation.