logo-loader
viewAberdeen Asset Management

Aberdeen Asset Management reports large outflows following Brexit

The investment management group reported net outflows of £8.9bn, offset by £17.5bn of asset appreciation.

High rise building
Aberdeen imposed a week long suspension on its highly-exposed UK Property Fund

Aberdeen Asset Management PLC (LON:ADN) reported net outflows of £8.9bn during the quarter ending June, but said that equity investment performance was recovering well after the Brexit shake-up.

The investment management group said that the large outflow was offset by £17.5bn of asset appreciation, with £301bn assets under management at the end of the quarter.

The group said it expected some continuing volatility in UK and European equity markets as Brexit negotiations proceed.

“However, broader equity markets have been reasonably resilient,” added the group, “as have other asset classes. Against this backdrop, our commitment to controlling costs and driving efficiencies in our business is undiminished.”

Aberdeen said its businesses were well-positioned operationally both in the UK and in Luxembourg.

"There are many uncertainties out there, including the shape of the UK's future relationship with the EU, which might undermine market confidence. We remain well placed to take advantage, on behalf of our clients, of any weakness and will continue to focus on fundamentals rather than be distracted by market noise,” said chief executive Martin Gilbert.

Aberdeen imposed a week long suspension on its highly-exposed UK Property Fund following the referendum.

"For Aberdeen outflows from the property sector are a bit of a sideshow, as withdrawals are taking place across the board. At the moment for or every £1 in assets Aberdeen is attracting, £2 is walking out of the door, and that’s not sustainable for a fund manager in the long term," said laith Khalaf, senior analyst at Hargreaves Lansdown.

"The latest quarter did see some moderation in the pace of withdrawals from Aberdeen’s equity funds, though it’s difficult to get too excited by this when that still equates to over 3% of equity assets lost in just three months."

Shares ros ejust under 3% to 324.6p.

--UPDATE BROKER, SHARE PRICE--

Quick facts: Aberdeen Asset Management

Price: - -

LSE:ADN
Market: LSE
Market Cap: -
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Iofina PLC's Tom Becker updates on Organic Vines investment and IO#8...

Iofina PLC's (LON:IOF) Tom Becker speaks to Proactive London's Andrew Scott soon after announcing their investment in Organic Vines - a hemp seed production and genetics firm. Becker says they're anticipating to turn a profit of US$1.8mln by mid-2020. He also updates on the construction of...

15 hours, 30 minutes ago

2 min read