Aberdeen sees outflows slow slightly but pain of emerging markets still costs £9.1bn

The bad news is the latest to hit the firm as it continues to be battered by the slowdown in emerging markets.

In a trading update issued this morning, the firm said assets under management had increased to £290.6 billion from £283.7 billion at 30 September 2015, boosted by the acquisitions of Arden Asset Management and Advance Emerging Capital, completed in December, added a further £7.5bn to the firm’s assets, while the additional acquisition of Parmenion was completed in early January.

But outflows of £20bn for the last three months of the year were impacted by withdrawals from sovereign wealth funds as investor sentiment toward Asia and emerging markets remained weak.

The net outflows of £9.1 billion in the last three months of 2015 marked a slowing from the £12.7 billion recorded in the quarter to 30 September but the firm said “additional cost savings have been identified and will be implemented in late 2016 and 2017.”

However, a statement said that the business believes investment in “high-growth economies” will deliver “significant returns” over the longer term.

Chief executive Martin Gilbert said: “During the quarter we added to the business further, completing the acquisitions of Arden and Advance, followed by Parmenion in early January. Like the rest of the industry we continue to contend with the structural imbalances of the global economy and the cyclical slowdown in emerging markets, as well as the impact of falling oil and commodity prices. Despite the day-to-day fluctuations in investor sentiment we remain focussed on those issues that we can control. We are committed to our fundamental approach to investing, managing the business efficiently with a keen focus on costs and most of all striving to deliver the long-term returns that our clients and shareholders have come to expect from Aberdeen.

“Our increasingly diversified business model and strong balance sheet mean we are well placed to navigate the current difficult market conditions offering a wide range of investment capabilities for investors.”

Meanwhile, the wealth manager also announced that chairman and non-executive director Roger Cornick will retire in September.

He will be replaced by Simon Troughton, who is currently senior independent non-executive director on the firm’s board.

Cornick joined Aberdeen’s board in January 2004 and became chairman in January 2009.

Troughton was also appointed senior independent non-executive director in October 2014.