Aberdeen hikes interim dividend despite profit dip

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Fund manager Aberdeen Asset Management today reported a drop in first-half profits but said shareholders were in line for a 12.5 per cent boost to their dividends.

The group, which last week completed its £550 million acquisition of Scottish Widows Investment Partnership (Swip) from Lloyds Banking Group, said underlying pre-tax profits for the six months to 31 March were 3 per cent lower than a year ago at £217m.

Revenues dipped 2 per cent to £503.5m as the firm witnessed net outflows of £8.8 billion, with clients pulling their money out of equity products.

Chief executive Martin Gilbert said: “Aberdeen has delivered a resilient set of numbers in this half year, given the difficult backdrop for emerging markets.

“Our disciplined investment approach, long-term investment track record and tradition of client service have enabled us to limit equity outflows whilst we have continued to win mandates in other asset classes, such as fixed income and property.”

Despite the lower profits, shareholders will receive an interim dividend of 6.75p a share on 19 June, up from 6p a year earlier.