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Aberdeen GEM range accounts for 25% of €3.9bn outflow

Aberdeen GEM range accounts for 25% of €3.9bn outflow

Aberdeen Asset Management has achieved its goal of stemming outflows into its popular global emerging markets equity range in what proved to be a tough quarter for the firm.  

After employing a range of measures in a bid to discourage investors from pouring cash into the strategies, in February the firm introduced a 2% initial charge on the funds, which include the Aberdeen Emerging Markets and Global Emerging Markets funds, alongside the Global Emerging Markets Smaller Companies fund, managed by Devan Kaloo and his team.

As a consequence the range saw a net outflow of €1.04 billion (£0.9 billion) in the three months to 30 June, Aberdeen's financial third quarter, with inflows of €1.85 billion (£1.6 billion) offset by outflows of €3 billion (£2.6 billion).

This contributed around 25% to a total outflow of €3.9 billion (£3.4 billion) for the quarter, with a €0.35 billion (£0.3 billion) outflow from its newly acquired US fixed income business Artio also impacting. The turn in sentiment towards fixed also played a big role with bond funds registering an outflow of €1.6 billion (£1.4 billion) over the quarter.

The firm’s Asia Pacific arm was one bright spot, posting an inflow of €862 million (£744 million) thanks to strong interest in Japanese equities.

These flows translated to a fall in assets from €246 million (£212.3 million) at the end of March to €242.9 million (£209.6 million) at 30 June.  

Aberdeen won €11.2 billion (£9.7 billion) worth of new business over the quarter, increasing the total to €39.7 billion (£34.3 billion) for the nine months to 30 June.

Commenting on the numbers, Aberdeen chief executive Martin Gilbert (pictured) told the stockmarket: ‘We have delivered resilient figures during the third quarter given the volatile global market conditions.

‘Our disciplined investment approach meant a broad range of our products attracted interest from investors although towards the end of the period outflows increased due to heightened market turbulence.

‘The net outflow also reflects the deliberate steps we have taken to manage the capacity of our global emerging market equity funds for the benefit of existing clients.'

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