Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Aberdeen still ‘uncomfortable’ with GEM equity flows after £1.7bn quarter

Aberdeen still ‘uncomfortable’ with GEM equity flows after £1.7bn quarter

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.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Potential US rate rise, cheap oil & the Europe opportunity

Potential US rate rise, cheap oil & the Europe opportunity

This week we analyse the implications of a possible rise in US interest rates, the impact of cheap oil and the European equity opportunity.  

Play Carmignac's Crowl: what QE could mean for Europe

Carmignac's Crowl: what QE could mean for Europe

The ECB is widely expected to finally fire its QE gun this week. Carmignac's Sandra Crowl discusses the implications for the eurozone.

Play Grexit worries, currency wars and a grizzly outlook for 2015?

Grexit worries, currency wars and a grizzly outlook for 2015?

The first Investment Pulse of the year looks at the potential impact of Greece leaving the euro, volatility in currency markets and the UK’s economic prospects.

Your Business: Cover Star Club

Profile: DIY investing is biggest threat to industry, says Whitechurch

Profile: DIY investing is biggest threat to industry, says Whitechurch

The industry is at risk of pushing potential investors down the DIY route unless it does more to make its services accessible says the Whitechurch Securities boss

Wealth Manager on Twitter