Q1 update

Abrdn posts upturn in assets as markets rise

Stephen Bird
Stephen Bird: transformation on track but there is work to be done

Abrdn, the Edinburgh-based investment manager, has stemmed the outflow of assets under management and seen a slight upturn during the first quarter.

AUMA growth of 3% to £507.7 billion reflected stronger markets and positive net flows, said the company in an update on trading for the three months to 31 March.

There were net inflows of £0.8bn, including £2.6bn of net inflows into liquidity. This compared to Q1 2023 net outflows of £6.2bn, including £1.8bn of net outflows from liquidity.

Investments AUM have increased to £374.3bn from £366.7bn, primarily reflecting positive market movements across most asset classes.

The adviser business continued to show negatively with net outflows of £0.9bn. Gross inflows were in line with Q1 2023. However, as seen in Q4, redemptions were elevated owing to the continued impact of the higher cost of living and further IFA consolidation.

The company also reported continued organic growth in its interactive investor business with customer numbers up 3% to 414,000. AUMA now stand at £69.6bn compared with £66bn at the end of the previous quarter and rose by £1.2bn in Q1 against £0.7bn in the correspondining period last year.

Abrdn said action is underway to address outflows in adviser and equities.

Stephen Bird, CEO, said: “Our AUMA grew 3% in the period to £507.7bn, supported by a positive contribution from markets across all three businesses. We had net inflows at a group level, including strong liquidity flows which contributed to positive overall flows within Investments.

“At interactive investor, we saw continued organic growth in customers and flows. We were particularly pleased with the growth in SIPP customers. Yet clearly there is more work to be done in Investments and Adviser, where we have actions underway to improve performance. 

“Our cost transformation programme is on track as we take action to sustainably restore our business to a more acceptable level of profitability. Our key focus, and our most important priority, is on delivering investment performance for all of our clients.”

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