The slide in the oil price has forced some sovereign wealth funds from oil producing nations to de-risk, a factor which Aberdeen said has seriously dented assets under management (AUM), which now stands at £290.6 billion.
"Management (at Aberdeen) indicated that at its height, sovereign wealth funds contributed 10 percent of total AUM, which has now reduced to 2.5 percent. The company stated that despite reduced outflows in Q1/FY16 in equities (except for in global where outflows accelerated) on the prior quarter, it remains 'too early to call a halt to outflows,'" said analyst at RBC Capital Markets, Peter Lenardos in a note published Wednesday.
Credit Suisse lowered their earnings per share estimates for the group after the update.
"Aside from the market depreciation impact, the main change we have made relates to net fund outflows, which we have increased for 2016 end from £15.9 billion to £26.0 billion. This incorporates a higher run-rate of net outflows – partly due to market conditions," said research analyst at Credit Suisse, Tom Mills.