Aberdeen Asset Management reports outflows after Trump win

Aberdeen Asset Management said investor sentiment "stalled" following Donald Trump's victory in the US presidential election

Aberdeen Asset Management has reported big outflows from its funds following Donald Trump's victory in the US presidential election.

In the last quarter of 2016, the firm saw net outflows of £10.5bn, which were partially offset by market gains of £3.3bn.

Aberdeen reported that the bulk of outflows were "largely low margin and anticipated".

It said investor sentiment "stalled" following the US election result.

Assets under management fell by 3% over the quarter to £302.7bn.

The firm said the rationalisation of its US fixed income business accounted for £2.2bn of the reduction.

It added that a further £2.4bn was scheduled to be withdrawn from lower-margin portfolios during the current quarter.

In a trading update, Aberdeen said it continued to make "encouraging progress across all asset classes, with a healthy level of client interest and demand".

'In good shape'

Chief executive Martin Gilbert added: "Investor sentiment had been improving steadily in the early part of the quarter, but stalled following the US presidential election result with investors putting asset allocation decisions on hold.

"Encouragingly, despite the market volatility our equity strategies produced strong returns for the year.

"While growing interest in a number of our strategies is likely to continue to be masked, in the short-term, by significant withdrawals by a small number of clients, I am encouraged by the progress being made.

"Overall Aberdeen remains in good shape, we have a strong balance sheet, a global client base and wide range of capabilities to meet the needs of investors."

The company's share price fell in early trading, following the update. At 11:30, it was down about 3.4%, at 249.40p.