Aberdeen Asset Management Plc tumbled in London trading after an unidentified client withdrew 4 billion pounds ($6.8 billion) of assets from the firm’s global and Asia-Pacific region equity funds.
The shares dropped the most since January to close down 5.3 percent to 435 pence. The firm, which bought Scottish Widows Investment Partnership last year, reported a 0.6 percent decline in assets under management to 322.5 billion pounds in the three months to June 30, according to a statement today. That fell short of some analysts’ estimates.
“The miss versus our forecasts appears to be threefold,” Owen Jones, an analyst at Espirito Santo Investment Bank, wrote in a note to clients. “Higher net outflows than expected from Aberdeen, higher-than-anticipated net outflows from SWIP” and a 5.3 billion-pound hit from foreign-exchange movements contributed to the miss.
Aberdeen, traditionally an investor in emerging markets, bought SWIP in November to broaden its product offerings and make it Europe’s largest publicly traded money manager by assets. The stock has lost 13 percent this year, on track for its worst annual performance since 2008, as reduced stimulus from the Federal Reserve tempered demand for riskier assets.
The Scottish firm today reported 5.5 billion pounds of total net outflows for its Aberdeen business and 3.3 billion pounds from SWIP. Outflows from global emerging-markets equities slowed to 200 million pounds.
The shares fell even as the company said it had won 2 billion pounds of mandates that hadn’t yet been funded by clients as of June 30.