27th Jan 2016 07:26
LONDON (Alliance News) - Aberdeen Asset Management PLC on Wednesday said it continued to suffer net outflows in the quarter to the end of December, driven by continued volatility in emerging markets, and said it will cut further costs as it looks to cope in a tough investment environment.
The FTSE 100-listed emerging markets fund manager, which has suffered in recent months from its exposure to a slowing Chinese economy, said it recorded net outflows of GBP9.1 billion for the quarter to the end of December, compared to the GBP12.7 billion it posted in the quarter to the end of September.
Overall, the group's assets under management at the end of September totalled GBP290.6 billion, compared to GBP283.7 billion at the end of September. The assets under management was pushed higher by the recently-completed acquisitions of Arden and Advance.
Aberdeen said, however, the outlook for its fund flows looks "difficult" and the market volatility which has hit its performance in recent months continues apace. It added it will make additional cost savings in the business, which will be implemented in late 2016 and early 2017, in order to shore itself against the tough market conditions.
"Like the rest of the industry, we continue to contend with the structural imbalances of the global economy and the cyclical slowdown in emerging markets, as well as the impact of falling oil and commodity prices," said Martin Gilbert, Aberdeen's chief executive.
"We are committed to our fundamental approach to investing, managing the business efficiently with a keen focus on costs and most of all striving to deliver the long-term returns that our clients and shareholders have come to expect from Aberdeen," Gilbert added.
Aberdeen, in a separate statement, also said Roger Cornick will retire as its chairman at the end of the current financial year to the end of September. He will be replaced by senior independent non-executive director Simon Troughton.
By Sam Unsted; [email protected]; @SamUAtAlliance
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