Aberdeen hit by an £11.3bn money drain

ABERdEEN Asset Management was among the biggest fallers on the FTsE 100 yesterday after it revealed a net £11.3bn of investors’ cash had flowed out of its coffers in the six months to the end of March. shares fell 12.5p or 2.7pc to 450.6p after the huge drainage of money.

The figures come just days ahead of a General Election that is threatening to jolt markets.

The FTsE 100 has been trading at record highs above 7,000 but could be rocked if there is an inconclusive outcome in the polls or by a Labour administration dependent on the sNP.

The group specialises in investing in emerging markets, which have until recently been boosted by an influx of billions of QE dollars from the us. investors now fear those markets will suffer as the era of cheap money comes to an end.

Martin Gilbert, the chief executive, said Aberdeen has reduced its exposure to emerging market shares through its takeover of the scottish Widows investment Partnership in 2013 to 21pc of group assets under management, from 35pc.

it has also launched four low cost funds aimed at the uK pensions market following new rules allowing people to invest their own retirement pot rather than being forced to take an annuity. Profits rose 10pc to 185m and the dividend increased 11pc to 7.5p. He added that he will conduct a share buyback programme of up to £100m to return surplus capital to investors.

Gilbert said the possibility of a Labour/sNP power axis ‘doesn’t scare me,’ adding that ‘the market seems to be shrugging off fears of a coalition’.

He added that he would ‘prefer not to have the inconvenience’ of a British exit from the European union.

The veteran chief executive, who was paid £4.8m last year, said he had ‘no problem’ with proposals by the institute of directors to clamp down on fund manager pay.