Aberdeen Asset Management sees profits drop despite Scottish Widows boost

 
Harriet Green
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Aberdeen Asset Management has reported a 12 per cent fall in profit before tax to £168.7m in the six months to March, against a “difficult backdrop for emerging markets”.

Revenue fell two per cent to £503.5m, with underlying earnings per share dropping four per cent to 14.3p.

Weaker investment sentiment have meant “exacting conditions” in emerging markets, chairman Roger Cornick commented. Although the asset management firm says uncertainty will remain, it thinks sentiment is picking up and it’s confident equity outflows have been managed.

The completion of the Scottish Widows Investment Partnership (SWIP) deal, which saw Aberdeen buy the latter’s infrastructure arm, has gone to plan, and given the company an “exceptional platform” to work from, it says.

Assets under management increased to £324.5bn in the period, of which the SWIP transaction added £134bn.

Demand for fixed income and property strategies has continued to grow in emerging markets, Cornick added.