Aberdeen Asset Management’s share price falls on news of higher emerging market outflows
Aberdeen Asset Management has suffered a decline in total assets for the year, as a result of weaker investor sentiment in emerging markets.
The investment giant, which specialises in Asian markets, experienced net outflows of £12.7bn during the three months from July to September. Total assets at the end of the period were valued at £283.7bn – a big fall from £324.4bn a year earlier.
Read more: Aberdeen Asset Management boss Martin Gilbert in it for the long haul
"The cyclical correction in Asian and emerging markets and resulting negative investor sentiment has, as expected, led to further flows from our equities business,” said chief executive Martin Gilbert.
While we believe the current weakness may have some way to run, the long term fundamental attractions of investing in these high growth economies remain compelling for patient investors.
Shares in the company dropped in morning trading following the news, and are currently down 1.4 per cent at 330p.
To counteract the negative impact of emerging markets, Gilbert said he is focusing on diversifying the company's portfolio: “We continue to rebalance and diversify the business, to focus on managing our costs and to generate cash and this has helped to mitigate the impact of the outflows we've seen,” he said.
We intend to continue with this strategy alongside ensuring we continue to deliver long term value for our clients and shareholders.