Aberdeen funds hit by negative market sentiment

Fund manager Aberdeen Asset Management today blamed gloomy market conditions across Asia and emerging markets for a fall in assets under management during the first quarter.

The firm said assets under management dropped to £193.6 billion during the three months to the end of December, down from £200.4bn in September.

However, chief executive Martin Gilbert said Aberdeen has a strong pipeline of new business, which is expected to deliver an additional £2bn of assets early this year.

The group is also making good progress towards completing its acquisition of Edinburgh-based rival Scottish Widows Investment Partnership from state-backed Lloyds Banking Group, Gilbert said.

He added: “Business flows reflected the continuing negative sentiment towards Asian and emerging markets generally, particularly later in the quarter.

“However, we believe the fundamental attractions of the Asian and developing economies and companies that we invest in are compelling. We remain committed to our rigorous investment process and are confident that we will sustain our record of long-term outperformance.”