Aberdeen Asset Management's share price plunged this morning, making it the biggest faller on the FTSE 100 this morning, after revealing a gloomy set of results.
The fund manager has had a tough quarter. Assets under management have dropped considerably, down to £307.3bn at 30 June from £330.6bn at the end of March as a result of market conditions and FX movements.
It has also been hit by net outflows: investors have taken £9.9bn out in just three months as they reduce exposure to Asia and emerging markets.
It has received £4bn of new commitments and mandates, but this has not yet been completed.
Why it's interesting:
It's not just Aberdeen's mutual funds that investors are piling out of. This morning the business was the biggest faller on the FTSE 100, down 8.25 per cent, at one point plunging almost eight per cent.
It recovered slightly during mid-morning trading to a decline of around 6.2 per cent at pixel time.
What they said:
Chief executive Martin Gilbert managed to remain upbeat in the face of the results.
"Our strategy for diversification has progressed further during the period,” he said. “We have launched a number of new products in our solutions business, completed the purchase of the remaining stake in Aberdeen SVG Private Equity, and announced the acquisition of FLAG Capital Management.
"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 AuM. In addition, macro-economic factors and investor sentiment towards Asia and emerging markets continued to weigh on equity flows. Despite this the long term investment case for Asia and emerging markets is unchanged and we believe that committed investors will be rewarded over time.
"Our rigorous investment process and diverse product range, combined with effective cost management and a strong balance sheet enables us to continue to provide long-term solutions to meet the needs of our clients."