THE BANK of England’s downbeat view risks dragging Britain back into recession, the head of Aberdeen Asset Management has warned.
Martin Gilbert, the chief executive of Aberdeen – which posted a sharp exodus of funds in the run-up to its year-end – said Sir Mervyn King’s attitude could hit the economy in 2012.
Last week King warned of a new credit crunch and Gilbert told City A.M.: “The recovery is pretty fragile. People don’t know whether there is going to be a recession or not. We have got the Governor of the Bank of England saying everything is bad – people do listen and cut back.”
Clients pulled £900m from Aberdeen in September’s stormy markets, taking net outflows to £1.7bn over the year to 30 September. Gilbert said, however, that he thought the peak of the “worry” had now passed.
Assets under management fell 4.9 per cent to £169.9bn but Aberdeen posted a surprise a 44 per cent rise in pre-tax profits to £301.9m, beating analysts’ forecasts of £288m to £295m.