Aberdeen toils lead to FTSE 100 exit

Aberdeen toils lead to FTSE 100 exit

Aberdeen Asset Management has been removed from the FTSE 100 index in the latest quarterly rebalancing.

The emerging-market focused fund house has seen its share price fall 50 per cent since its peak 11 months ago and saw huge outflows as sentiment turned against the firm’s favoured emerging market asset classes. Inclusion in the FTSE 100 is based primarily on market capitalisation.

In the last three months of 2015 the firm saw £9.1bn of net outflows. This was only mildly better than the £12.7bn seen in the previous quarter.

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At the time of its fourth quarter results, chief executive Martin Gilbert stressed the company’s focus on cost cutting, and its strategy to diversify away from emerging markets. It has made three acquisitions in the last year in a bid to build up its international business.

The firm is also set to lose its chief investment officer Anne Richards to rival M&G Investments later this year.

From March 21 2016 it will sit in the mid-cap FTSE 250 index, having originally entered the FTSE 100 in March 2012.