Aberdeen Asset Management revenue and profits increase as investors return to emerging markets

 
Caitlin Morrison
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Aberdeen said markets had been buoyant for most of the first half (Source: Aberdeen Asset Management/Facebook)

Aberdeen Asset Management hailed a turnaround in investor sentiment towards emerging markets today as it revealed profits and revenue grew in the six months to 31 March.

The figures

Revenue was up 10.6 per cent to £534.9m from £483.6m this time last year.

Underlying pre-tax profit increased 19.8 per cent to £195.2m, and earnings per share rose 19.9 per cent to hit 11.5p, compared with 9.6p last year.

Statutory profit before tax was £115m, up from £98.8m.

The dividend is maintained at 7.5p per share.

Aberdeen's share priced was up 3.6 per cent at the open.

Why it's interesting

The firm reported assets under management of £308.1bn at the end of the first half, compared with £292.8m this time last year, despite net outflows of £13.4bn. Chairman Simon Troughton said "buoyant markets for much of the six months and the weakness of sterling versus other currencies helped to cushion the effects" of the outflows.

Troughton said investor sentiment towards emerging markets had "again turned more positive", having stalled in the wake of last November's US presidential election result, with £800m of net inflows into Aberdeen's emerging market strategies in the second quarter.

However, Troughton also warned that although the IMF recently upgraded its global growth forecasts, "political events may continue to generate volatility and we therefore remain cautious on the short term economic outlook".

Meanwhile, the asset manager is progressing on its merger with Standard Life, which was announced earlier this year. Chief executive Martin Gilbert said the deal is "is on track and the combined businesses will form a world-class investment company strengthening further both companies' ability to meet the evolving needs of clients and customers".

What Aberdeen said

"These figures reflect improving sentiment towards emerging markets combined with our transition to becoming a full-service asset manager offering a broad range of capabilities via multiple distribution channels globally," said Gilbert.

"Global growth appears to be recovering but elections and geo-political issues will continue to weigh on investor sentiment. Our fund managers across asset classes will remain focused on investment fundamentals in helping our clients achieve their long-term financial objectives."

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