The size of assets under management was the performance metric investors were watching out for when Aberdeen Asset Management (ADN) reported its first-half results. The emerging markets-focused asset manager has endured tremendous outflows during the past three years as sentiment towards emerging markets has soured.
There was good and bad news. Assets under management fell to £293bn by the end of the period, from £331bn for the same period last year. However, while the asset manager suffered £9.8bn in net outflows from equities in the first half, this had slowed from £12.4bn in last year's second half, with improved sentiment in both Asia-Pacific and emerging markets.
Recurring fee income fell with assets, down a fifth to £482m. What's more, the blended average management fee rate also declined from 35.5 basis points to 33.4 basis points, due to outflows from higher-margin equity products. However, compare Aberdeen's first-half performance with the second half of last year and there are signs of improvement. A net £7.8bn in assets were added via acquisition, including the purchase of Arden, Parmenion and Advance. The group also generated positive investment performance of £10.1bn, meaning assets under management were actually £9bn up since 30 September 2015.
Analysts at Peel Hunt expect adjusted pre-tax profits of £323m and EPS of 18.8p for 2016 (down from £492m and 30p in 2015).
ABERDEEN ASSET MANAGEMENT (ADN) | ||||
|---|---|---|---|---|
| ORD PRICE: | 269.5p | MARKET VALUE: | £3.55bn | |
| TOUCH: | 269.2-269.6p | 12-MONTH HIGH: | 465p | LOW: 209p |
| DIVIDEND YIELD: | 7.2% | PE RATIO: | 16 | |
| NET ASSET VALUE: | 128p* | NET CASH: | £401m | |
| Half-year to 31 March | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2015 | 683 | 185 | 10.9 | 7.5 |
| 2016 | 539 | 99 | 5.5 | 7.5 |
| % change | -21 | -47 | -50 | - |
Ex-div:12 May Payment:16 Jun *Includes intangible assets of £1.53bn, or 116p a share | ||||
