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Aberdeen still ‘uncomfortable’ with GEM equity flows after £1.7bn quarter
by Dylan Lobo on Jan 17, 2013 at 07:47
Aberdeen Asset Management said it is looking to stem inflows into its emerging market equity franchise after the group recorded a net inflow of £1.7 billion across the range in the final quarter of the year.
In total Aberdeen attracted gross sales of £3.3 billion in emerging market equities over the quarter, which was around £0.9 billion more than the third quarter.
The range includes Devan Kaloo's Emerging Markets fund, which the group expressed concern about last February. According to its latest factsheet, the strategy controlled $15.5 billion as at the end of November.
Its Asia Pacific range was also a big driver on inflows with net new money standing at £1.4 billion.
In a statement to the stock exchange Aberdeen said: ‘Flows into our equity products have remained strong, with our Asia Pacific product having been particularly popular in the latest quarter. Net inflows to emerging market equities have continued at a higher rate than we are comfortable with and we are working to achieve a slowdown to ensure performance is not compromised.’
Overall the Aberdeen group recorded a net inflow of £1.1 billion versus zero in the previous three months. Its emerging market debt range also proved to be popular with an inflow of £0.8 billion.
Assets under management rose by 3% over the period to stand at £193.4 billion.
Aberdeen chief Martin Gilbert (pictured) was pleased with the overall performance but warned of the challenges ahead for developed markets.
‘Overall performance across Aberdeen's range of strategies continues to be strong. This performance, driven by our disciplined approach to investing, combined with our global distribution model has helped support flows into a range of products,’ Gilbert said.
‘The economic problems of many developed world countries are likely to remain a challenge for growth and markets for some years to come. However, Aberdeen's focus on fundamentals and expertise in a wide range of asset classes leaves us well placed to continue to meet the needs of our clients.’
With Aberdeen shares up some 80% over the last 12 months investors used the trading update as an opportunity lock in some profits. At 10am shares were 8.9p, or 2.27%, lighter at 382.8p.
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Aberdeen Live supplement: Fundamentals point to ongoing flows and solid returns from EMD
After a record year for inflows and market-leading performance in 2012, emerging market debt has taken a large step towards the mainstream. Our recent debate covers the outlook for the asset class this year and where opportunities can be found.