Aberdeen profit rises

City A.M. Reporter
Aberdeen Asset Management saw its underlying pre-tax profit rise 14 percent in its first half year after a recovery in client risk appetite boosted assets under management and the funds house improved its fee margins.

The UK fund manager said in a statement on Monday its pre-tax profit rose to £162.2m in the six months to end-March, up from £142.8m a year earlier, driven by a 3.4 basis point rise in its average fee margin to 43.9 basis points.

The group also said assets under management stood at £184.7bn at the end of March, up nine per cent from six months earlier.

Aberdeen is among a handful of asset managers, including Jupiter Fund Management and Polar Capital, to have reported a recovery in demand for riskier assets this year, as worries about the health of the global economy take a backseat.

However, Aberdeen's chief executive Martin Gilbert said the recovery remains in its early stages.

"Global economic conditions remain uncertain and any recovery is still tentative," he said.

"Nevertheless, we remain confident that our long term investment philosophy and process, couple with the scale and diversity of our business and financial strength, leave us well placed to meet the expectations of our investors."

Aberdeen said it is paying a dividend per share of 4.4 pence, up 16 per cent on last year.