For the full-year, Baird estimated net outflows of £27bn mark – less severe than last year’s total of £32.8bn.
However, he said profit before tax for the year would be 2% lower at £346m and earnings per share would fall to 20.1p, from 20.7p in 2016.
Aberdeen chief executive Martin Gilbert attributed the “healthy rise in revenues and profits” to “improving sentiment towards emerging markets” and the market’s embrace of Aberdeen’s “transition to becoming a full-service asset manager.”
Aberdeen’s emerging-market strategies, both equities and debt, attracted £800m in net inflows during the second quarter. The group predicts that they will benefit from “compelling” outlook for emerging markets over the medium and long-term.
Over the May Bank Holiday weekend, Sky News reported that Aberdeen and Standard Life had set aside £35m in retention bonuses to tempt a cluster of executives and star fund managers to stay put post-merger.
Initial reports after the merger was announced suggested that over 1,000 jobs were at risk at Aberdeen.
Gilbert did not address the cuts nor the £35m bonus pot in Tuesday’s update but confirmed that the proposed merger with Standard Life was “on track”.
He added that “the combined businesses will form a world-class investment company strengthening further both companies’ ability to meet the evolving needs of clients and customers.”
