Aberdeen Asset Management reports net withdrawals up

The company said clients continued to buy its Asian and emerging market debt funds

Investment firm Aberdeen Asset Management saw clients pulling out more money at the end of last year but said its higher-margin funds were still attracting new business.

Aberdeen said investors withdrew a net £2.8bn in the three months to end-December, largely from lower margin assets such as fixed income.

In the previous quarter, the firm reported a net £1.7bn of withdrawals.

However, clients continued to buy its Asian and emerging market debt funds.

Those funds, which command higher margins, helped add about £10m of fee income for the company.

Aberdeen said total assets edged up 2% over the three months to £173.9bn, helped by a combination of market gains, performance and currency moves.

Last month, the firm reported a sharp rise in profits for the year to the end of September.

Chief executive Martin Gilbert said the figures continued the momentum from Aberdeen's strong full-year results.

He added: "Our investment performance is robust in the face of ongoing macroeconomic instability.

"I am confident that Aberdeen's disciplined investment processes and our unerring focus on fundamentals rather than market noise will continue to deliver for our clients over the long term."