Aberdeen Asset Management said to be further diversifing as Bank of England backs stress tests
Aberdeen Asset Management, having recorded outflows of £12.6bn over the three months to the end of September, is reportedly eyeing up bond fund manager Rogge Global Partners.
Aberdeen is one of three potential firms that could bid for Rogge, following financial services group Old Mutual putting it up for sale, it was yesterday reported by Sky News.
There has been pressure on Aberdeen to diversify away from its core Asian markets following a sharp drop in commodity prices and a hit to emerging market equities.
Currently global equities, emerging market equities and Asia-Pacific equities account for more than half of Aberdeen's revenues.
Read more: The Fed will clear things up for Aberdeen and co.
Rumours of Aberdeen’s interest in Rogge come as the Bank of England’s financial policy committee (FPC) backed plans to test the resilience of investment funds and asset managers in times of stress.
The move is part of a plan to carry out broader stress tests beyond the core banking sector.
The FPC said the recent rapid growth in open-ended funds, which manage a total of almost £1 trillion of assets, could cause vulnerabilities to the UK financial system.
The Financial Stability Board first proposed to stress test asset management firms and investment funds in October.
Macquarie and ScotiaBank are reportedly the other two firms in the running to acquire Rogge, which currently manages around £25bn worth of assets.
Investment bank Evercore is handling the sale on behalf of Old Mutual.
Aberdeen has been increasing its portfolio with acquisitions over recent years.
It is expected to finalise the purchase of fund manager Parmenion this month.
Earlier this year it snapped up private equity firm FLAG Capital and hedge fund manager Arden Asset Management.
In 2013, Aberdeen acquired Scottish Widows Investment Partnership for £550m.