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Aberdeen turns corner as outflows enter fourth year

Aberdeen turns corner as outflows enter fourth year

Aberdeen entered its fourth straight year of outflows in the three months to end March as clients redeemed a net £2.9 billion from its funds, although the pace of redemptions slowed sharply.

That was down from £10.5 billion in outflows in the prior three months, leaving assets under management at the end of the period at £308.1 billion, up from £292 billion in the prior year.

Similarly, the company’s operational numbers suggested that the business had begun to bottom out as investors began to tentatively reallocate to its core emerging and East Asian markets.

Net revenue at the business, which last month announced a proposed merger with Standard Life, rose from £483 million to £534 million, while pre-tax profit rose from £162 million to £195 million.

The company said it had completed £70 million in cost savings in recent years, with the recent weakness in sterling helping to support the company’s balance sheet.

‘These figures reflect improving sentiment towards emerging markets combined with our transition to becoming a full-service asset manager offering a broad range of capabilities via multiple distribution channels globally,’ noted company chief executive Martin Gilbert (pictured).

‘We have experienced net inflows into our emerging market strategies in recent months and encouragingly into our diversified growth strategies and the Parmenion platform during the period.’

Singling out the company’s emerging market strategies headed by Hugh Young and Devan Kaloo, the group recorded an £800 million inflow over the first three months of the year.

The company added that it would update investors on the timetable for its merger shortly and expected the deal to be completed by the end of the year.

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Hugh Young
Hugh Young
11/19 in Equity - Asia Pacific Small & Medium Companies (Performance over 3 years) Average Total Return: 20.67%
Devan Kaloo
Devan Kaloo
206/239 in Equity - Global Emerging Markets (Performance over 3 years) Average Total Return: 22.84%
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