Aberdeen Asset Management’s assets under management decreased 7.6% to £307.3 billion ($483 billion) over the three months ended June 30, as investors continued to reduce exposure to Asia and emerging markets equities.
In a financial update, the firm said net outflows reached £9.9 billion during the quarter. That compared to net outflows of £6.5 billion for the three months ended March 31.
Market movements and the effects of foreign exchange also hit assets under management in the most recent quarter.
Aberdeen's equity assets under management dropped 10.2% to £99 billion, and fixed-income assets fell 7% to £67.3 billion. Aberdeen's solutions business saw assets under management fall 5.4% to £121.6 billion, but the firm's real estate assets remained steady at £19.4 billion.
Equity net outflows were £4.5 billion, largely from Asia-Pacific and global equities. Aberdeen said in the update that both sets of outflows were largely due to “withdrawals from a small number of institutional mandates.” Asia-Pacific equities net outflows were £1.9 billion, and global and European, Australasia and Far East equities saw net outflows of £2.1 billion. Global emerging markets equities net outflows slowed to £543 million, compared with £1.7 billion over the three months ended March 31.
Fixed-income net outflows were £1.4 billion, which the update said included seasonal outflows from low-margin Scottish Widows Investment Partners liquidity funds. Aberdeen acquired SWIP last year.
Emerging markets debt funds recorded net inflows of £96 million despite “subdued investor sentiment,” and following two quarters of net outflows.
“Market and FX movements together with low-margin outflows from certain fixed-income and solutions clients accounted for a large proportion of the decline in (assets under management),” said CEO Martin Gilbert in a statement accompanying the update. “In addition, macroeconomic factors and investor sentiment toward Asia and emerging markets continued to weigh on equity flows. Despite this, the long-term investment case for Asia and emerging markets is unchanged and we believe that committed investors will be rewarded over time.”