Aberdeen Group PLC (LSE:ABDN) was among the weakest performers as European asset managers saw a strong rebound in fund flows in April, according to analysis from Citi.
The bank said flows across the sector improved sharply, helped by a recovery in markets, offering a more positive backdrop for organic growth in the second quarter.
However, Aberdeen lagged peers, with outflows continuing, though Citi noted these appeared to come largely from lower-margin parts of the business.
By contrast, Man Group PLC (LSE:EMG) stood out as the strongest performer, with inflows continuing despite its exposure to lower-margin long-only strategies.
Investors remain more cautious on higher-margin alternatives funds, the note said.
The bank said it continues to favour selected alternatives managers where there is scope for earnings upgrades, naming Bridgepoint Group PLC (LSE:BPT) and CVC Capital as its preferred picks.
The improvement in flows was broad-based across the sector, although passive strategies continued to drive the bulk of net inflows.
Citi added that much of the recent recovery reflects market movements rather than underlying demand, with “beta” rather than new money accounting for most of the uplift.
Valuations remain broadly in line with historical averages, with traditional asset managers trading at around 11.5 times forward earnings.