Index axe

Abrdn poised for FTSE 100 exit as value slumps

Heading for a fall: Abrdn’s shares have continued to decline (pic: Terry Murden)

Abrdn’s ejection from the blue-chip stock market index looks certain to be confirmed following a slump in its value since the merger of Standard Life and Aberdeen Asset Management in 2017.

The Edinburgh-based investment company, whose assets under management have shrunk due partly to lost mandates, will lose its place in the FTSE 100 as its shares have continued to tumble.

They have declined by 44% in the past year and by 65% since the merger, causing the company’s value to fall from £11bn at that time to £3.2bn, raising the prospect of a takeover bid emerging.

Abrdn’s slump has continued despite pledges by Stephen Bird to grow the business since he took over as chief executive in late 2020.

Our commentary earlier this month on the fate of Abrdn

He has blamed the firm’s slower than expected growth on ‘market turbulence’, more specifically geopolitical uncertainty, rocketing inflation and worries about the global economy .

Apart from the controversial rebranding of Standard Life Aberdeen and the sale to Phoenix of the Standard Life business, Mr Bird has restructured the company.

The most recent acquisition – of investment platform Interactive Investor – has been broadly welcomed.

It positions the group in the growing DIY investor market and analysts say it should provide a relatively stable source of assets.

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