Aberdeen Asset Management reported assets under management of £193.6 billion ($316.3 billion) as of Dec. 31, down 3.4% from Sept. 30, according to an interim statement Thursday.
Aberdeen suffered net outflows of £4.4 billion in the three months ended Dec. 31, as investors continued to withdraw from Asia and emerging markets. That compares with £3.6 billion of net outflows in the quarter ended Sept. 30, and net inflows of £1.1 billion in the three months ended Dec. 31, 2012.
Gross inflows of £6.8 billion were not enough to stem outflows of £11.2 billion.
Flows “reflected continued negative investor sentiment towards Asia and emerging markets generally, particularly later in the quarter, and the slowdown in inflows has mainly been felt in equities,” said Martin Gilbert, CEO of Aberdeen Asset Management, in a conference call with analysts and institutions Thursday morning. “The outflows from global equities were as a result of strategic asset allocation changes made by two very big segregated clients, while flows out of fixed-income and solutions businesses continued to be mainly out of lower-margin products.”
Equity assets fell 4.3% to £108.9 billion from Sept. 30. This included £3.1 billion of equities net outflows.
Mr. Gilbert said there is a good pipeline of new business for the first quarter 2014, with £2 billion of wins “just being funded as we speak. These actually are invested in emerging markets, both bonds and equities,” he said, as well as across Japanese equities, money markets and Nordic property.
“Encouragingly, we have seen net inflows into emerging markets bonds, high yield and property — three capabilities which you have heard me say in the past are key elements of our global distribution,” Mr. Gilbert said.
He added that the recent deal to acquire Edinburgh-based money manager Scottish Widows Investment Partnership “will significantly expand and diversify our base of assets under management.” Mr. Gilbert said he expects to close the deal “within the first calendar quarter.”