Aberdeen Asset management sees clients pull £800m

UK fund manager Aberdeen Asset Management said clients pulled £800m from its funds in the two months to the end of August as market volatility hit demand for its fixed income and alternative products.

Assets under management fell to £176.9bn at the end of August, 4.8 per cent lower than at 30 June, as slumping stock markets hit performance of Aberdeen's core range of equity funds, the investment house said in a statement on Monday.

"There is no easy resolution to Europe's sovereign debt problems and the expectation is for anaemic economic growth in the West for some time," Aberdeen's chief executive Martin Gilbert said.

Despite shaky returns, Aberdeen said clients added £300m to its equity fund range during the period, however, buying global emerging market and global equities strategies to offset weaker stock markets in Europe and the UK.

Strong demand for these products and other higher-margin pooled funds is expected to push profits for the full financial year to the top end of analysts' forecast range of £262m and £297m, Aberdeen added.

After the announcement the company's shares rose by around four per cent.