Aberdeen Asset Management Plc (ADN), Scotland’s largest money manager, reported 4.4 billion pounds ($7.2 billion) of net outflows in the fourth quarter as clients withdrew funds from emerging markets.
Assets under management fell 3.4 percent to 193.6 billion pounds in the three months to Dec. 31 from the previous quarter, the London-based company said in a statement today.
“Business flows reflected the continuing negative sentiment toward Asian and emerging markets,” Chief Executive Officer Martin Gilbert said in the statement. “Given the environment, we are closely managing costs. We have a strong new business pipeline which is expected to deliver around an additional 2 billion pounds in assets in early 2014.”
Aberdeen invests about two-thirds of assets in global emerging markets and stocks from the Asia-Pacific region. Competitor Ashmore Group Plc tumbled earlier in the week in London trading after clients withdrew $3.5 billion in funds from the emerging-markets money manager in the three months through December.
Gilbert also said the company is progressing with its acquisition of Scottish Widows Investment Partnership from Lloyds Banking Group Plc, which will “significantly expand and diversify” its assets under management. The company agreed to acquire the firm for 560 million pounds in November to create Europe’s largest publicly traded money manager.
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