Strong markets help push AAM profits up 37%

Aberdeen Asset Management (AAM) has unveiled a 37 per cent jump in half-year profits, driven by a strong performance across global stock markets and “healthy” new business sales.

Despite the positive market conditions during the first half, the fund manager said the volatility seen this month meant it was taking a “cautious” approach to the outlook for the rest of the year.

For the six months to 31 March, the firm posted an underlying pre-tax profit of £222.8 million, up from £162.2m for the same period a year earlier, on revenues 25 per cent higher at £516m.

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Assets under management grew 13 per cent to £212.3 billion and shareholders will receive an interim dividend of 6p a share, an increase of 36 per cent on last year’s payout.

AAM chief executive Martin Gilbert said: “It has been a strong first half to the year, with investors’ appetite for risk assets returning. As a result we have seen healthy net new business flows which, combined with performance by global markets, has generated strong growth in our revenue and in profit margins.

“We remain cautious on the market outlook but believe our fundamental approach to investing will continue to serve our clients’ long-term needs.”