Aberdeen outflows continue but profits jump 25%

Aberdeen Asset Management today reported a 25 per cent increase in the first-half profits, but clients continued to pull their cash out of the group’s funds.

Assets under management rose to £330.6 billion at the end of March, up from £324.5bn a year ago, as positive market movements offset net outflows of £11.3bn in the first half of the firm’s financial year.

Underlying pre-tax profits for the six months to 31 March came in at £270.2 million, against £217m last time, on revenues 20 per cent higher at £605.2m.

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Chief executive Martin Gilbert said: “Gross new business inflows have continued to grow. However, they have been offset by outflows, which reflect changes in asset allocation driven by macro-economic factors and some structural outflows from certain clients.

“Despite these headwinds we are well positioned for the long term: financially strong, with a global distribution platform and a diversified range of capabilities and solutions for the evolving investment environment. Our absolute priority, as always, remains delivering for our clients.”

Aberdeen announced an 11 per cent rise in its interim dividend to 7.5p a share, to be paid on 18 June.