16th Jan 2014 08:25
LONDON (Alliance News) - Aberdeen Asset Management PLC Thursday said its clients withdrew GBP4.4 billion in the first-quarter, as investors turned against Asian and emerging markets.
At the end of December, Aberdeen had GBP193.6 billion in assets under its management, compared to GBP200.4 billion at the beginning of the first-quarter.
Chief Executive Martin Gilbert said the "fundamental" attractions of Asian and developing economies and countries it invests in remain "compelling", with the asset manager noting that it saw "encouraging flows" into emerging market bonds, high yield and property strategies over the quarter.
In a statement, the FTSE 100 asset manager said it attracted GBP6.8 billion to its funds in the last three months of 2013, but saw GBP11.2 billion of funds leave - mainly because of a GBP3.1 billion outflow from its equities funds.
The difference between the two figures gives the net outflow of GBP4.4 billion.
"From a business perspective, it is pleasing to note that the blended average fee rate has continued to increase. However, given the environment we are closely managing costs," Gilbert said in a statement. "We have a strong new business pipeline which is expected to deliver around an additional GBP2 billion in assets under management in early 2014 across a range of asset classes and geographies," the chief executive added.
The blended average fee rate increased to 51.3 basis points from 50.0 basis points in the year to September 30.
The asset manager said it would continue its long-term strategy instead of chasing performance.
The company said it has been making good progress towards completing the acquisition of Scottish Widows Investment Partnership from Lloyds Banking Group PLC. It is seeking regulatory approval for the deal, under which the two companies agreed to a strategic partnership, which saw Aberdeen buy SWIP for a sum that could be worth up to GBP660 million.
In early trading Thursday, Aberdeen Asset Management shares were down 4.4% at 429.20 pence.
By Samuel Agini; [email protected]; @samuelagini
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