Job cuts expected at Aberdeen Asset Management

Aberdeen_AssetAberdeen Asset Management is set to reveal job cuts to reduce costs in the face of emerging markets pressures.

The firm is expected to announce job cuts at the end of the month but says investment roles will be spared.

In its annual results, the asset manager will announce “a small number of roles” will be cut, according to the Financial Times.

Aberdeen, a top-three European asset manager, has been affected by turmoil in emerging markets and is expected to reveal further outflows and cost-cutting measures at its annual results presentation on 30 November.

This is mainly as a result of the firm’s acquisition of Scottish Widows Investment Partnership in April last year.

Aberdeen, which employs about 2,485 people, added 500 from Lloyds Banking Group in the deal.

Martin Gilbert
Martin Gilbert

Aberdeen chief executive Martin Gilbert said: “Following the 12-18 month integration of Swip, a small number of roles are now surplus to requirements. People retiring over the next few months will also not be replaced.

“No investment roles will be touched but we will look to do more in terms of controlling our costs.”

Aberdeen, which manages more than £307bn in assets under management, currently employs 2,485 people including 500 from the Swip acquisition.

The asset manager has also been hit hard by the turmoil in emerging markets, suffering net outflows of almost £10bn in the three months to the end of June.

In September the fund group acquired a number of businesses including Bristol-based Parmenion Capital Partners as well as investment manager Advanced Emerging Capital.

Gilbert said: “We will probably make another four or five similar acquisitions next year but the main thing we will do is wait for the downturn in Asia to end — and it will.

“We will weather the storm and come out better the other end.”

But Mr Gilbert said he remains intent on further acquisitions in an effort to diversify its business away from its reliance on Asian markets.

So far the firm has made four moves on small firms, including Advance Emerging Capital (AEC), a Londonbased investment manager specialising in emerging and frontier market funds; Arden Asset Management, which has offices in New York and London; and US private equity specialist Flag Capital Management.

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