Tuesday, 31 May 2016
Last updated 3 days ago
Nov 30 2010 | 4:44pm ET
Aberdeen Asset Management said today that its profit has more than doubled this year. But the Scottish asset management and hedge fund firm said it was unlikely to use its earnings for a major acquisition, such as that of the trouble Gartmore Group.
The firm's pre-tax profit soared to £210 million in the year ended Sept. 30, up from £85.1 million in fiscal 2009. Assets under management rose almost 22% to £178 billion.
"It's been one of those vintage years," CEO Martin Gilbert said. "We had good markets, benefited from good acquisitions and from good cost-cutting. That has produced a spectacular set of results."
But Gilbert said that there would be no more good acquisitions for the time being, especially not of Gartmore, which has been in a tailspin since star hedge fund manager Roger Guy announced his retirement earlier this month.
"We’re extremely unlikely to be buying Gartmore," Gilbert said. "Gartmore's strong preference is to keep the business intact and probably merge with someone smaller than us."
"The model doesn't really fit our structure," he added. "We have a more team-based approach. They're more the star fund manager approach. It's more akin to Jupiter [Fund Management] or Henderson [Group] than us."