Aberdeen’s AUM falls after move to slow inflows into EM funds

Aberdeen Asset Management has seen assets under management fall in the second quarter of 2012, after it deliberately curbed inflows into some of its most popular emerging market equity funds.

AUM in the three months leading up to 30 June 2012 totalled £182.7bn, 1% lower than the £184.7bn reported on 31 March.

Martin Gilbert (pictured), chief executive of Aberdeen, said the reduction in AUM was largely due to the firm’s deliberate attempt to slow flows into its behemoth Aberdeen Global Emerging Markets Equity and Emerging Markets funds, which it announced in February.

The two funds hold around £11bn in assets in total.

At the time, the group said it wanted to avoid total closure and allow small investors to continue with regular monthly savings plans.

“We have seen a welcome slowing of flows into our global emerging market equity (“GEM”) funds,” said Gilbert (pictured).

The group added gross new business totalled £8.8bn in Q2, down from £10.9bn in the same quarter last year, bringing the total for the nine month period to 30 June 2012 to £27.0bn, compared to £33.9bn in the same period in 2011. Gross inflows for the quarter were approximately £1.6bn lower than for the previous quarter.

Net new business for the quarter totalled £300m, the bulk of which went into equities and fixed income.

Gilbert said much of the new business was coming into the firm’s Asian, global and emerging market portfolios, but said the equity products did have capacity issues.

In terms of distribution, Gilbert said Aberdeen was concentrating on the US and Europe, adding that firm planned to open a New York office later this year.

“We believe that the current investor focus on income and yield generation, global products and a greater use of alternatives is likely to continue,” he said.

“This has been another successful quarter for Aberdeen, despite the global economic uncertainties and subdued conditions in the world’s financial markets. We continue to concentrate on delivering superior investment performance and service for our clients, which enables us to grow organically whilst maintaining a strong balance sheet,” he added.


This article was first published on Investment Week

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