Aberdeen Asset Management plc (LON:ADN) benefits from an increased appetite for risk.
Aberdeen Asset Management's (LSE: ADN) share price is currently up over 8% on the publication of its interim results for six months to 31 March 2013. The company, which joined the FTSE 100 last year, reported underlying pre-tax profit up 37%, at £223m, on revenue that was up 25%, at £516m. Earnings per share rose by 43%, to 14.9p.
Assets under management have increased by 13% to £212bn, compared with 30 September 2012, with the bulk of inflows being into the company's main equity products -- global emerging markets ('GEM'), Asia Pacific and global equities. The inflow to GEM products, in particular, will have helped drive the rise in revenue, given the higher margin they command. It will also have helped lift the company's operating margin for the period to 43.8%, well up on the 40.6% reported for the full year to September 2012.
And while they currently represent only a few percent of the funds it manages, inflows to Aberdeen's emerging market debt funds increased dramatically, with £1.4bn coming in, compared with only £0.3bn during the same period in 2012.
In line with its objective of growing the dividend progressively, Aberdeen's board has announced that it will increase the interim dividend by an impressive 36% over 2012's payment, bringing it to 6p per share. Aberdeen's yield now stands at around 3.3%, just below the FTSE 100 average, but is forecast to rise to around 3.8% in 2014.
Martin Gilbert, Aberdeen Asset Management's chief executive, commented:
"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."
Aberdeen's share price is now up almost 50% on this time last year, compared with a rise of only just over 10% for the FTSE 100 on average. Even more impressive is its five year performance -- up 180%, in stark contrast to an essentially flat FTSE 100.
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> Jon doesn't own shares in Aberdeen Asset Management.