Recruitment back on the agenda at Aberdeen

Over the last year, Aberdeen Asset Management has largely bolstered its headcount (and AUM) through acquisitions. This buying spree may now be over, however, and the firm is likely to focus on "organic" growth again.

The Scottish fund manager's interim results look rather attractive. Assets under management now stand at 170.9bn in its first fiscal half, while pre-tax profits in the six months to 31 March were nearly triple the comparable period last year to stand at 92.6bn.

Not surprisingly, CEO Martin Gilbert pointed to the firm's strategy of making selective acquisitions at attractive prices. In January it completed the acquisition of Royal Bank of Scotland's fund of funds business, having purchased Credit Suisse's asset management arm in 2009.

Inevitably, some employees (including fund managers and back office staff) fell by the wayside during these acquisitions, but it also seems to be how AAM has added talent over the last year.

RBS's team, for instance, moved to Aberdeen following the acquisition and are now focusing on launching a Ucits III-compliant fund of absolute return funds.

Similarly, 40 new staff joined in distribution after the Credit Suisse acquisition, and AAM also brought in new skills around money markets and convertibles after adding 25 fund managers to its fixed income team.

Staff costs increased to 112m for the first half, which is 38% up on the same period in 2009.

Although he didn't comment specifically on hiring, Gilbert suggested that acquisitions are unlikely going forward and that the firm will focus on natural growth.

"If you look at the history of Aberdeen we have tended to make acquisitions in bear markets and grow organically in a bull market. Maybe this is a sign we are in a bull market," he said.

The group saw strong inflows into its equities portfolio during the six-month period, which increased by 6.8bn. Fixed income continued to suffer outflows, however, as clients moved money into higher margin business.