Aberdeen hit by weak emerging market flows

Michael Bow
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ABERDEEN Asset Management, Europe’s largest independent fund house, yesterday reported a dip in revenues and profits as investors shunned its flagship emerging market products.

The group, listed on the FTSE 100, said revenues fell two per cent and underlying pre-tax profits three per cent for the six months ending March after investors pulled about £8.8bn from funds.

The group has been hit by a recent drop off in investor sentiment towards key emerging markets following concerns ranging from Chinese growth prospects to Brazil’s slowing economy.

“It’s been a pretty tough time for emerging market,” Aberdeen chief executive Martin Gilbert said in an interview with City A.M.

“It was pretty brutal during those months but now sentiment has changed, everyone has stopped pulling their money out and they’re doing okay. It’s more positive.”

Assets under management rose substantially after Aberdeen closed its deal to buy Scottish Widows Investment Partnership, which added about £134bn and took the company’s pot of money it manages for clients to £324.5bn.

Without the Swip deal, assets would have fallen five per cent to £190.4bn from £200.4bn.

Shares in Aberdeen fell nearly five per cent in early trading before recovering to close down 2.36 per cent.