Pain and gain

2 May 2017 By Neil Unmack Follow @unmack1

Aberdeen and Standard Life have set aside a reported 35 million pounds to retain star workers after they merge. The cost savings should be bigger and Aberdeen’s latest results support the strategic rationale for the deal. Yet market moves suggest shareholders are sceptical.

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Aberdeen Asset Management and Standard Life will set aside 35 million pounds to stop fund managers leaving when they merge, Sky News reported on May 1. Aberdeen Chief Executive Martin Gilbert confirmed on May 2 that money had been set aside for this purpose.

Aberdeen Asset Management said revenue in the six months ending March 31 rose 10.6 percent compared with a year earlier, to 535 million pounds. Clients withdrew 2.9 billion pounds of assets in the quarter ending March 31, compared with net withdrawals of 10.5 billion pounds in the previous three months.

Aberdeen’s shares were up 3.6 percent at 289.5 pence by 1012 BST on May 2.

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