Welcome to the new Independent website. We hope you enjoy it and we value your feedback. Please contact us here.

Business News

Tapering hits Aberdeen as outflows jump in Q1


The US Federal Reserve decision to taper its bond- buying programme in December has continued to weigh on Aberdeen Asset Management during the first quarter of the year, new figures show.

Aberdeen said it had suffered net outflows of £3.9 billion from its funds in January and February, with a further £200 million believed to have been pulled out by clients last month.

The withdrawals have been part of the wider emerging market sell-off since the US announced its tapering of financial stimulus measures, which some fear will destabilise economies like Asia.

Despite the outflows, shares in the group rose more than 5 per cent to 412p as it completed the takeover of Scottish Widows Investment Partnership from Lloyds Banking Group.

The deal will boost Aberdeen’s assets under management to £324.5 billion, making it Europe’s largest listed standalone fund manager.

Martin Gilbert, chief executive, said: “Encouraging inflows to emerging market debt, high-yield bonds and property have partly offset net outflows from our Asian and emerging market equity products.”

Analysts at RBC Capital Markets welcomed the acquisition, saying: “The transaction, in our opinion, continues to give Aberdeen the diversification it needs: exposure to UK and European equities ... greater scale in property, access to retail investors and a substantially reduced reliance on emerging markets and Asia-Pacific equities.”