Big outflows from its funds in the wake of Donald Trump’s victory in the US presidential election saw total assets at emerging markets-focused Aberdeen Asset Management PLC (LON:ADN) drop in its fiscal first quarter.
The FTSE 250-listed firm said net outflows across all its products totalled £10.5bn in the three months to December 31, which was only partly offset by £3.3bn of market gains.
Aberdeen said the bulk of the outflows were from lower margin products, which had been largely anticipated.
It added that a further £2.4bn was scheduled to be withdrawn from lower-margin portfolios this quarter.
The group’s overall assets under management at the quarter-end were £302.7bn, down 3% from £312.1bn at the end of September.
Election stall ..
Aberdeen’s chief executive Martin Gilbert said: " Investor sentiment had been improving steadily in the early part of the quarter, but stalled following the US presidential election result with investors putting asset allocation decisions on hold.“
However, he added: “Encouragingly, despite the market volatility our equity strategies produced strong returns for the year."
Gilbert continued: "While growing interest in a number of our strategies is likely to continue to be masked, in the short-term, by significant withdrawals by a small number of clients, I am encouraged by the progress being made.”
In a note to clients, Shore Capital analyst Paul McGinnis noted: “ This is now Aberdeen’s fifteenth consecutive quarter of net outflows, a cumulative figure of (£104.6bn).”
In early trading, Aberdeen Asset was the top FTSE 250 faller, shedding 3.6%, or 9.3p at 248.8p.