Home Funds & Trusts Aberdeen Asset Management reports 7% drop in assets

Aberdeen Asset Management reports 7% drop in assets

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Aberdeen Asset Management reports 7% drop in assets

Aberdeen Asset Management (LON:ADN), Europe’s largest listed fund manager, reported a 7% fall in assets under management; with total net outflows of £9.9 billion during the quarter as institutional investors continue to reduce exposure to Asia and emerging markets equities.

In the same quarter last year, Aberdeen saw outflows of £8.8 billion, raising concerns at the increasing rate investors are cashing in looking to re-allocate in the strong dollar environment. This brings total assets under management as of the 30th June down to £307.3 billion, from £330.3 billion on 31st March.

Aberdeen Chief Executive Officer Martin Gilbert said:

“Market and FX 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. In addition, macro-economic factors and investor sentiment towards Asia and emerging markets continued to weigh on equity flows.”

ADN has now lost over a quarter of its market cap since peaking at 509 on the 13th April this year. It is trading at 372p per share, down 7% on the day, as market participants digest the news.