Tough first quarter for Aberdeen Asset Management

Difficult market conditions were making for a tough start to the year for Aberdeen Asset Management with its net flows remaining in the red.

According to a trading update on Wednesday, the FTSE 100 firm did increase its assets under management in the three months to 31 December 2015 to £290.6bn, from £283.7bn in the quarter to 30 September.

Its net outflows were down to £9.1bn, from £12.7bn. Net inflows were also down to £20bn, from £22.2bn, with the firm blaming withdrawals by sovereign wealth funds for the disparity between the inflows and outflows.

Aberdeen Asset Management said market and foreign exchange movements were positive for the quarter, adding £8.5bn to assets under management, though the company's board warned that volatility was still ongoing.

"During the quarter we added to the business further, completing the acquisitions of Arden and Advance, followed by Parmenion in early January", said Aberdeen chief executive Martin Gilbert.

"Like the rest of the industry we continue to contend with the structural imbalances of the global economy and the cyclical slowdown in emerging markets, as well as the impact of falling oil and commodity prices", he added.

The company remained cautiously confident, saying while its flows outlook remained difficult and the market volatility continued, additional cost savings had been identified and were due to be implemented in late 2016 and 2017.

Aberdeen had already announced £50m in cost savings, and said it would be in a better position to explain the new cost savings at its interim results announcement in May.

"Our increasingly diversified business model and strong balance sheet mean we are well placed to navigate the current difficult market conditions offering a wide range of investment capabilities for investors", Gilbert said.