Aberdeen Asset Management, Europe’s largest independent fund manager, reported slightly higher profits after weathering a “volatile” year.
Underlying profit before tax was up 1.57% at £490.3 million but profit before tax fell 9.14% to £354.6m, partly because of the purchase of investment group Scottish Widows Investment Partnership from Lloyds in March.
Figures for the year to the end of September showed results had been affected by uncertainty in financial markets.
The group expected conditions to remain uncertain given prospective changes in interest rates and the broader economic environment.
The volatile year included clients pulling £8.8 billion in funds earlier in the year, causing AAM’s share price to drop more than 5%.
In early trading yesterday the group’s share price surged 24.2% to 474.56p, but later fell back to close up 1.69% at 457.50p
AAM, which has £324.4bn of group funds under management and advice, will recommend a dividend of 11.2p a share, making a total payment for the year of 18p per share. The figure is 12.5% higher than last year.
Martin Gilbert, AAM’s chief executive, said: “We have delivered robust performance this year in a more challenging environment, underpinned by our long-term track record and also our transformational acquisition of SWIP, which has diversified the group.
“The first half of the year was particularly demanding, as investor sentiment turned sharply against emerging market economies.
“Recently, however, we have seen those concerns abate, and outflows from our Asian and emerging market funds have moderated.”
The group’s acquisition and integration of SWIP was on schedule and was delivering cost synergies ahead of expectations.
It had also made AAM a more balanced and diverse business “and more easily able to ride out the ebb and flow of investor sentiment in particular asset classes and geographies”.
The chief executive said markets are likely to remain volatile given the uncertain economic and interest rate environment, but the new financial year has started well.
A broadened product range was attracting interest from a range of clients.
He added: “We will continue to apply our philosophy of long-term fundamental investing to meet the objectives of our clients.”
Chairman Roger Cornick said the world was facing political and economic uncertainties, and economies and markets would remain susceptible to periods of volatility.
The group had entered the new year in a strong financial position, with priorities focused on ensuring the efficient integration of SWIP and the continuity of high quality client service.
“We remain confident that, over the longer term, we will be able to deliver attractive returns both for four investment clients and our shareholders,” he added.