Asset managers reveal stark Q1 divide as geopolitics reshape investor flows
Aberdeen and Liontrust Asset Management have both been hit by large net outflows as the war in Iran tests investor nerves.
While stock markets have staged a tentative recovery, plenty of edgy investors fled for the exit last month.
Aberdeen said net outflows reached £2.9billion in the first quarter, while Liontrust was hit by £836million worth of redemptions.
Aberdeen's said its investment business suffered the majority of redemptions over the period. Institutional and retail wealth clients pulled out £5.4billion between January and March, up from the £4.1billion net outflows in the previous quarter.
Chief executive Jason Windsor said the outflows were 'anticipated redemptions'.
Gross inflows of £1.9billion in the period were offset by the rise in equity redemptions, but there was momentum in its SIPP pension product, which attracted 3,000 new customers.
Aberdeen said lower markets and previously announced equity withdrawals weighed on managed assets, which fell to £547.7billion at the end of March, from £556billion at the end of December.
That came despite record growth at Interactive Investor, the investment platform it bought in May 2022. Customer numbers rose 14 per cent year-on-year to 513,000 with net inflows reaching £3billion.
Aberdeen maintained its outlook set out in its annual results despite first quarter volatility, expecting profits and net capital of at least £300million.
Liontrust said its net quarterly outflows had eased to £836million, down from £1.3billion a year ago.
The group reported assets under management and advice of £19.6billion by the end of the period, climbing to £20.8billion by 20 April.
It said it had benefited from investor diversification away from US equities and increasing demand from clients for active management.
John Ions, chief executive at Liontrust, said: 'This more positive outlook for flows reflects the expansion of Liontrust's international distribution. We are extending our reach in the Middle East and Asia and have continued to make further progress in Europe.'
The group's proposed acquisition of River Global Holdings was overwhelmingly approved by River Global shareholders earlier this month and is set to broaden Liontrust's investment reach and client base.
It was a more positive quarter for wealth manager Quilter, which posted record net inflows of £3billion for its first quarter driven by 'steady' client demand.
Total assets under management jumped to £141.9billion, an 18.65 per cent year-on-year increase.
The Middle East war has driven investors to seek more active financial advice, boosting demand for wealth management services and supporting net inflows at firms such as Quilter, as clients look for reassurance and selective investment opportunities.
