Aberdeen Asset Management shares hit by fund outflows

Aberdeen shares led the FTSE 100 index of Britain’s top companies lower, down 3.7 percent for a year-to-date loss of 25 percent that leaves them on course to post their biggest yearly fall since 2008.

Net revenue rose 5 percent to 1.169 billion pounds from last year’s 1.118 billion pounds.

The firm acknowledges weak investor sentiment towards Asia and emerging markets as the main factor, as well as outflows from closed books managed for insurers.

Assets at the end of September totalled 283.7 billion pounds ($426 billion), down from 324.4 billion pounds a year earlier, Aberdeen said, hit particularly by outflows of 16.4 billion pounds from its equity funds and a negative market move of 12.1 billion pounds.

Performance of fund managers is usually measured by its “net fund flows” – a sum of all the cash put in or pulled out of the firm’s investments.

The group has been diversifying outside of emerging markets both organically and through acquisitions, such as SWIP which completed previous year, with a greater focus on alternatives and multi asset propositions.

The company also recorded its 10th consecutive quarter of net fund outflows.

Asian and emerging markets are key markets for Aberdeen Asset Management. While we believe the current weakness may have some way to run, the long-term fundamental attractions of investing in these high growth economies remain compelling for patient investors. “We intend to continue with this strategy alongside ensuring we continue to deliver long-term value for our clients and shareholders”.

It is going to pay a final dividend of 12.0 pence a share, meaning the payout for the year as a whole will be 19.5 pence, up from 18.0 pence a year earlier.

By mid-morning, its share price was down by more than 4%, at 320.3p.