Emerging Markets

Aberdeen Uncomfortable With Rate Of Inflows To Emerging Market Equities

Sally Ling London 18 January 2013

Aberdeen Uncomfortable With Rate Of Inflows To Emerging Market Equities

Reporting on the final quarter of 2012, Aberdeen Asset Management says that it has seen net inflows to emerging market equities at a higher rate than the firm is comfortable with and it is working to achieve a slowdown to ensure performance is not compromised.

During Q4 2012, Aberdeen attracted gross new business to the value of £10.8 billion (around $17.3 billion), up from £9.0 billion in the previous quarter. Outflows in Q4 totalled £9.7 billion, resulting in net inflows for the quarter of £1.1 billion.

The firm reports that it has seen inflows into its higher-margin pooled funds investing in both equities and bonds, while outflows have been mainly from lower-margin segregated portfolios. The effect on revenue has, therefore, been positive, with the net flows for the quarter adding approximately £30 million of annualised fee income.

At 30 December 2012 Aberdeen had total assets under management of £193.4 billion (£187.2 billion at 30 September 2012).

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