Aberdeen upbeat despite £8bn hit from volatility

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Aberdeen Asset Management is on track to deliver full-year profits at the top end of analysts’ forecasts despite its funds under management falling by almost £8 billion in the wake of volatile stock markets.

The fund manager, which was fined £7.2 million by the City regulator earlier this month following a mix-up over client money, saw its assets under management fall to £201.7bn by 31 August, from £209.6bn two months earlier.

Aberdeen said “considerable volatility” across the world’s stock markets knocked £3.7bn off the value of its funds, with currency fluctuations accounting for a further £3bn decline.

Investors pulled out £1.2bn of their money during July and August, better than the £1.4bn net outflow predicted by Barclays analysts. Emerging market equities accounted for £600m of the decline, but this was partly offset by strong inflows into higher-margin equities products, emerging market debt and high-yield bonds.

Chief executive Martin Gilbert said: “While we retain a cautious outlook for markets generally, we believe our long-term investment philosophy and disciplined process leave us well placed to achieve further growth in profits and cashflow.”

Aberdeen will post its full-year results on 25 November and analysts expect profits of between £431m and £477m.