Standard Life Aberdeen has reported a drop in assets under management and administration of £1.4bn in the year to date.
The company was created following a merger of fund houses Aberdeen and Standard Life which completed in August 2017.
At 31 December 2016, pre-merger, the assets of the two companies were £647.6bn. In the combined company they are now £646.bn.
Institutional clients pulling funds from the company were the central reason for the drop in assets, withdrawing £4.5bn.
Another drag is Standard Life's flagship Global Absolute Return Strategy (GARS).
The fund saw outflows of £6.8bn to September 2017, the last month for which figures are available in 2017.
The company said conditions in this market remain “challenging", but said its emerging market debt, multi-asset and impact investment products have seen strong demand this year.
Keith Skeoch, joint chief executive officer at Standard Life Aberdeen said: “The integration of Aberdeen Standard Investments is on track and we are delighted with the way the teams are coming together to deliver for clients.”
He added: “While the combined business has experienced net outflows, these were in line with our expectations given the asset classes affected and the structural outflows from our lower margin mature books.
"Nevertheless the momentum in our business is good with £58.6bn of gross inflows during the period. We continue to innovate, launching new funds with strong backing from clients and winning new mandates across a wide range of investment strategies.”
David.Thorpe@ft.com
