STANDARD Life Aberdeen’s fund management business has reported net outflows of £10.9 billion for the nine months to September 30, as joint chief executive Martin Gilbert lamented the “huge pressure” faced by the global asset management sector.

In the first trading update for the Edinburgh investment powerhouse since its creation from the £12 billion merger of Standard Life and Aberdeen Asset Management earlier this year, the company said the outflows were in line with expectations given the asset classes affected. That is understood to reflect the muted demand seen this year for Standard Life’s flagship GARS (Global Absolute Return Strategies) fund, as well as ongoing outflows from Aberdeen funds against a backdrop of political and economic turmoil. The company also cited “structural outflows from lower margin books”.

Net outflows occur when the money flowing from an investment firm’s funds exceeds the amount of investment coming in.

Aberdeen Standard Investments reported total assets under management and administration of £569.7bn, down from £580.6n. That came as the Standard Life Pensions and Savings business saw assets under administration increase to £182.3bn, compared with £171.6bn at the end of 2016.

Mr Gilbert said: “If we had achieved the gross inflows of 2016 in 2017 we would have been a lot closer to [outflows of] £7bn, then that would have been a pretty good outcome for us, with the inflows on pensions and savings. I think everything is going the right way, but let’s be clear the asset management industry is under huge pressure right across the board.”

Mr Gilbert said he could “count on one hand” the number of clients the company has lost since the merger. However, he said some are holding back until they see how things settle down.

The co-founder of Aberdeen Asset Management, who jointly leads Standard Life Aberdeen with Keith Skeoch, downplayed the risk from Brexit, noting that larger asset managers have traditionally sold funds into Europe from offices in Luxembourg, as well as UK funds in the UK.

He said: “Touch wood, unless there’s something unforeseen, we remain reasonably confident that we are unaffected to any larger scale by Brexit.”

Despite speculation since the merger suggesting the company is seeking to offload £15 billion annuity book, the company said a sale is not imminent. Mr Skeoch noted that the annuity book remains a “cash flow positive” and profitable part of the business, adding that although annuities is not seen as part of the company’s long-term future, there is no pressure to sell the book. Mr Gilbert said: “Clearly you can see how important the pensions and savings business is to us – it’s where we get all our growth.”

Mr Gilbert said the company is confident of delivering cost savings of £200m per year further to the merger, as outlined in the prospectus. The deal is expected to lead to 800 job cuts from a workforce of around 9,000.

Mr Gilbert said: “As to the cost synergies, all I can say is we’re confident of achieving the number we have put in the prospectus and will give the market an update in February.”

Total assets under management and administration were described as stable at £646.2bn, compared with £647.6bn at December 31. Gross inflows of £58.6bn were reported, versus £60bn, amid strong demand for emerging market debt and multi-asset solutions, and diversified growth funds.

Shares in Standard Life Aberdeen closed up 4.2p at 418p.