Aberdeen’s revenue declines ‘cushioned’ by increase in assets

Aberdeen reports 10% rise in annual assets under management in 2016.

Aberdeen Asset Management’s decline in revenues this year has been ‘cushioned’ by a 10% increase in assets under management, according to its newly appointed chairman Simon Troughton.

The UK asset manager saw revenues decrease 14% for the year-end September to £1 billion, compared to just over £1.1 billion in September 2015.

Assets under management - which Aberdeen said were strongly supported by the depreciation of the British sterling - increased 10% this year to £312 billion compared to 2015.

“The early part of 2016 saw the continuation of the volatile and challenging market conditions experienced in 2015. In part, our exposure to developed market equities, fixed income and property assets cushioned us from some of this volatility,” Troughton explained in the annual earnings report.

He added that by mid-year, sentiment rallied strongly and Aberdeen witnessed the benefits of improved markets, especially for its emerging market and Asian focused asset classes.

Troughton’s outlook within the report described three ‘headwinds’ for the asset management sector; fee pressure, increased investment in technology and regulatory capital requirements.

“We will continue to seek further cost efficiencies, whilst also being prepared to make appropriate investment in innovation and otherwise supporting the future growth of the business and motivating our diverse workforce,” he said.

Aberdeen added it does not expect either its non-UK or UK businesses to be affected by Brexit, although regulatory and legal changes in the long-term could change this.