Aberdeen Group PLC (LSE:ABDN) shares fell 6.4% to 232.8p despite first-half profit beating expectations, as investors focused on weaker fund flows.
Adjusted operating profit rose 21% to £151 million, ahead of the £145 million consensus forecast, while net revenue increased 2% to £643 million. Adjusted earnings per share of 8.2p also beat the 7.4p estimate.
However, the group recorded £3 billion of net outflows, against consensus expectations for £800 million of inflows. Excluding liquidity products, outflows were £1.0 billion.
Investments suffered £5.6 billion of outflows excluding liquidity products, including around £4 billion of lower-margin equity withdrawals. A £1 billion credit mandate expected during the second quarter was delayed until early July.
Interactive Investor (ii) was the strongest division, with profits for the investment platform rising 18% to £84 million as customer numbers increased 14% to 525,000 and assets under management and administration climbed 15% to £108 billion. Net inflows reached a record £6.8 billion.
Aberdeen maintained its full-year targets for adjusted operating profit of at least £300 million and net capital generation of around £300 million.
The interim dividend was held at 7.3p.
Peel Hunt said profit was "excellent" and well ahead of its forecast, with ii the "star of the show".
The broker said the market had been "grudging at best in believing in a better Aberdeen emerging", but argued that the recovery was taking shape and retained its buy rating and 294p target price.
