Aberdeen chief defiant despite a slump in funds

SHARES in Aberdeen Asset Management climbed yesterday despite plunging markets and departing clients pulling the value of its funds down by nearly £9bn.

The stock closed 0.89 per cent up at 170p after it said full year profits would be near the top of analysts’ predictions of £262m to £297m.

Aberdeen said clients pulled a net £800m from its funds in the two months to 31 August, as fears over the global economy hit demand for fixed income and alternative products.

It also said its assets under management fell £8.1bn, or 4.79 per cent, to £176.9bn. Chief executive Martin Gilbert told City A.M. the loss “is just the market falling, which happens. We are still in good shape”.

He also said he was not seriously concerned by the prospect of a further fall in September, when equities have plummeted amid Eurozone turmoil.

Aberdeen said clients added £300m to its equity fund range during the period, buying global emerging market and global equities strategies to offset weaker European markets.

Gilbert said: “The expectation is for anaemic economic growth in the West for some time.”