New markets push up profit at Aberdeen

Marion Dakers
EMERGING market growth has propelled pre-tax profits at Aberdeen Asset Management to £109.1m in the last six months, doubling the gains of the same time last year.

Funds under management rose six per cent over the six months to the end of March to £181.2bn, and are 1.4 per cent ahead of this time a year ago.

The firm said outflows from more traditional fixed income funds have seen a “dramatic slowdown”, with £600m leaving the investment category during the half-year compared with £2bn at the end of 2010.

“[W]e are seeing encouraging interest in emerging market and Asian local currency debt, both of which we believe will provide considerable opportunity for new business wins over the next few years,” said chairman Roger Cornick.

The company is actually looking to slow the rate of investment in its emerging markets and Asia Pacific funds before they become too large to manage in their current state.

Revenues rose 30.9 per cent to £385.9m for the half-year.

Performance fees more than doubled to £19.1m, while recurring management fees rose 28 per cent to £366.5m. The group now has a £13.5m cash pile, compared with £7.7m net debt last year, which the firm plans to return to shareholders through an ongoing buyback and a 19 per cent dividend hike to 3.8p per share.