The environment has not been kind to the Scottish Widows’ fund business, and to its parent company Aberdeen Asset Management. The past year has seen both companies suffer some of the heaviest outflows out of all fund providers in the Europe. Scottish Widows has become the continent’s most unpopular fund company during 2013, after investors took out more than 6.8 billion euros from its funds. These figures come from Morningstar, and have shown a dramatic and irreparable decline in its business.
The Aberdeen group released a statement where they mentioned the fact that investors had decided to take their money elsewhere. However, they pointed to a general downward trend in emerging market fund flows, and hoped that the losses would only be temporary. Meanwhile, analysts at Barclays’ Investment Bank concluded that they had an overweight position on Aberdeen. Their reasons for this position referred to the revenue margins, growth from the acquisition of Scottish Windows and their potential capital gains. That report may put a positive spin on the situation at Aberdeen, but it is clear that the fund needs to find a new direction before they run out of business completely. Do you remember Gartmore?