Aberdeen quarterly asset boost fails to stem outflows
By Simon Jessop
LONDON (Reuters) - Aberdeen Asset Management said market gains helped total funds under management rise slightly in the December quarter, lifting its shares even as the outlook for its key emerging markets remained weak.
The firm's stock has been a favourite negative bet among hedge funds as concerns about global growth saw investors pull cash from its funds throughout last year, taking a third off its market value - its worst yearly performance since 2002.
While some of that negativity was pared immediately after Wednesday's update, helping its stock rise more than 2 percent, the firm recorded yet another quarter of net outflows and said more would likely follow in 2016 as sentiment remained weak.
Total funds under management rose 2.4 percent quarter on quarter to 290.6 billion pounds ($416.37 billion) in the three months to end-December, boosted by market and currency gains, but net outflows were 9.1 billion pounds, it said.
Barclays analysts had expected 6.5 billion pounds in net outflows, they said in a note to clients, adding the wide number of funds affected was "concerning".
The company said its equities funds saw net outflows of 6.3 billion pounds, down slightly from the September quarter's 7.9 billion pounds, while sovereign wealth funds continued to redeem money from the firm's global equity funds.
"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," Chief Executive Martin Gilbert said.
Positive market and currency moves added 8.5 billion pounds to the firm's assets, while the completed purchases of Arden Asset Management and Advance Emerging Capital during December added a further 7.5 billion pounds, it said.
While the company announced plans for further, as yet unspecified, cost savings over and above the 50 million pounds already flagged, the firm's outlook is still linked to that of key markets, even after efforts last year to broaden its offering geographically and by product.
"I don't think the fortunes of the company will turn around until we see markets such as China recover, India recover, emerging markets recover," Gilbert told reporters on a conference call. "It could be a long haul from here."
(Reporting by Simon Jessop; Editing by Rachel Armstrong and Susan Thomas)
