British asset managers suffered a wave of withdrawals in the final three months of last year, as clients fretting about a deepening eurozone crisis and choppy financial markets trimmed exposure to investment funds. Jupiter Fund Management reported its first quarter of net outflows since returning to the London Stock Exchange in June 2010, while Aberdeen Asset Management saw clients accelerate withdrawals at the end of last year.
Investors, rattled by volatile markets, have been pulling back from riskier investments across the fund management industry, often plumping instead for cash or passive products. The trading updates follow Wednesday's news that Man Group, the world's biggest listed hedge fund manager, would cut more jobs after suffering heavy client exits in the fourth quarter.
UK industry body the Investment Management Association said this month that equity funds suffered their largest outflow on record in November. "Given economic headwinds and deteriorating public and household finances across the eurozone and UK, financial markets are likely to remain volatile and flows subdued," Jupiter said in its trading statement on Thursday.
Jupiter shares were up 1.04 percent by 1040 GMT, while Aberdeen's were down 2.57 percent, against a 0.93 percent rise in the FTSE 250 index. Aberdeen said a net 2.8 billion pounds ($4.31 billion) of client money left its business in the three months to end-December. Oriel analyst Keith Baird said Aberdeen's outflows were higher than he had expected.
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