Aberdeen says clients “more comfortable” with EM

A weaker sterling following the Brexit vote helped Aberdeen Asset Management achieve positive investment performance by offsetting outflows, the company said. Aberdeen, which has seen some clients exit from emerging markets in recent months and more recently a Brexit-exposed UK property fund, saw its assets under management (AUM) rise to £301.4 billion (€359.7 billion) from just under £293 billion in the previous quarter. However, in the nine months to June 30, Aberdeen saw £25.6 billion of net ouflows, according to a quarterly trading update today. Aberdeen, a noted emerging markets investor, said the weakening of sterling against most major currencies contributed to the AuM increase. “Currency, exposure to a broad mix of assets and good investment performance outweighed the net outflows the business experienced this quarter,” Martin Gilbert, chief executive, said. Outflows for the quarter were £8.9 billion, but assets appreciated by £17.5 billion. The company said net outflows from equities showed a “small improvement” on the previous quarter, “partly reflecting investors’ comfort with their current exposure to emerging markets”. Markets showed a “strong recovery” after the market volatility in the last week of June when investors reacted to the result of the UK referendum on EU membership. “We expect some continuing volatility in UK and European equity markets as the political negotiations around Brexit proceed. However, broader equity markets have been reasonably resilient, as have other asset classes,” Aberdeen said. ©2016 funds europe

Sponsored Profiles

SPONSORED FEATURE: Investing for income

May 17, 2017

Portfolio Manager Thomas Kruse examines the findings from Pioneer Investments’ survey on income investing and outlines ways of achieving a target income.

SPONSORED ARTICLE: A radical solution to KYC concerns

May 17, 2017

The 1MDB affair shows that lax know-your-customer and due-diligence procedures are a major risk, says Paolo Brignardello, head of product management and marketing, Fundsquare. New solutions are...

SPONSORED FEATURE: AIFMD - What does Brexit mean?

Apr 18, 2017

An open discussion between funds industry experts and initiated by SGG Luxembourg took place in London to examine  the implications of Brexit for UK fund managers marketing to the EU.

SPONSORED FEATURE: Luxembourg fund reporting – CRS vs FATCA

Apr 18, 2017

Luxembourg funds need clear procedures for CRS compliance, writes Andrew Knight, Partner at M Partners, a member of the Maitland network of law firms.

Executive Interviews

INTERVIEW: Finding managers that can (and do)

Apr 18, 2017

Fabrice Kremer, a fund selector at Banque de Luxembourg Investments, has berated fundamental managers for failing to beat indices, but he remains committed to active funds. He speaks to Nick...

JERSEY INTERVIEW: ‘A steady sort of place’

Mar 21, 2017

The chief executive of Jersey Finance is keen to portray the island as a stable, trustworthy jurisdiction. He talks to George Mitton.



May 17, 2017

With such an intangible product, it can be hard for asset managers to communicate what they do. Having personality and connecting with customer aspirations may be the key, our branding roundtable hears.

ROUNDTABLE: The issue is perception

Mar 21, 2017

Our panel discuss tax transparency, the elegance of private placement and why Jersey could do more to promote itself. Chaired by Tom Cowsill in Saint Helier.