Aberdeen raises interim dividend by 16% Increased demand for riskier investments has pushed up revenues and pre-tax profits at Aberdeen Asset Management, encouraging the FTSE 100 fund manager to boost its interim dividend by 16 per cent. Aberdeen on Monday said higher demand for its equity products, particularly in emerging markets, contributed to a 7 per cent year-on-year increase in first-half revenues to £413.1m. However, the Scottish fund manager failed to staunch net outflows, which narrowed to £400m in the half - a slowing from the £2.8bn that clients pulled out from Aberdeen's funds in the first quarter. The group's equities business reported £4.9bn of net inflows, but this could not offset declines at its other four divisions. Net new business flows contracted by £2.3bn at the group's fixed-income division, £1.8bn at Aberdeen's hedge fund arm, £300m at its property business and £900m at its money market unit. Nevertheless, rising stock markets and a better investment performance made up for the net outflows and pushed up total assets under management to £184.7bn, a 2 per cent increase from £181.2bn the same time a year ago. Aberdeen's average fee margin rose 3.4 basis points year on year to 43.9bp. "We have had a strong first half, partly because of strong one-off performance fees," Martin Gilbert, Aberdeen chief executive, said. Global economic conditions remain uncertain and any recovery is still tentative. Nevertheless, we remain confident that our long-term investment philosophy and process ... leave us well placed to meet the expectations of our investors. Pre-tax profit for six months to March 31 rose 14 per cent to £124.3m, compared with £109.1m reported in the same period the year before. Diluted earnings per share rose from 6.93p to 7.95p, and the interim dividend per share increased 16 per cent to 4.4p (3.8p). Aberdeen, whose portfolios are weighted towards the Asia-Pacific region, attributed its stronger figures to improving its asset mix and increasing its pooled funds, rather than segregated assets. The results show the same combination of factors as has been seen over the past couple of years. Business momentum at Aberdeen remains strong, and our revised estimates appear well underpinned at prevailing market levels," Rae Maile at JPMorgan said. Aberdeen shares rose 2.6 per cent, or 7.3p, to 281.3p in early London trading.