Re-brand 'well-received'

Abrdn cuts outflows and acquires AI business

Abrdn-offices-in-Edinburgh

Sign of the times: new branding at offices in St Andrew Square (pic: Terry Murden)

Abrdn, formerly Standard Life Aberdeen, said it has reduced net outflows as it unveiled the acquisition of an AI business.

The Edinburgh-based wealth manager said net outflows for the half year reduced to £5.6bn with AUMA broadly flat at £532bn (FY 2020: £535bn).

It posted a 52% increase in adjusted operating profit for the the first six months to £160m against £105m last time. Profit before tax came in at £113m against a loss of £148m in the corresponding period in 2020.

The interim dividend is held at 7.3p.

Abrdn is buying Exo Investing from Nucoro for an undisclosed sum. It said acquisition will help it develop an industry leading technology solution for investors, powered by the Nucoro Platform. It is expected to complete in Q4 2021.

Chief executive Stephen Bird, speaking about the results, said: “We have made a strong start to the year and our three-year growth plan.”

“We have made a strong start to the year and our three-year growth plan.

Stephen Bird

Stephen Bird: strong start

“These results, the first as abrdn plc, show a 52% increase in adjusted operating profit. Each of our three growth vectors have delivered higher revenue and profits, contributing to the highest overall rates of growth since the merger.

“Our strategy is about focusing on client needs. The improved flows into our strategically-important products and services show that we are answering client demand. The majority of the outflows that we are seeing are lower margin.

“Low interest rates and central bank interventions have created supportive market conditions from which we have benefited. Market volatility is expected to continue due to COVID-19 and its unequal effects in different parts of the world.

“We have made good progress in simplifying and focusing our business. The leadership team is now in place to drive the growth we seek through our strategic priorities. Our capital strength gives us the ability to invest in these priorities.

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