Abrdn flags robust investing yr on par with 2022 as belongings shrink
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sset supervisor Abrdn has reported shrinking belongings and a drop in income for its funding division because it mentioned this yr was shaping as much as be as difficult as “one of the hardest investing years in living memory”.
The FTSE 100-listed finance agency noticed its shares drop by a tenth on Tuesday after revealing its monetary outcomes for the most recent half yr.
Assets underneath administration by the agency shrank to £496 billion within the six months to the top of June, from £500 billion on the finish of December.
It was led by a 16% soar in internet outflows to £4.4 billion, as extra folks moved cash out of funds and investments with Abrdn.
If 2022 was one of many hardest investing years in residing reminiscence, 2023 is shaping as much as be equally difficult
It mirrored clients responding to the elevated value of residing, and excessive inflation and rates of interest weighing on demand for advisory providers, the agency mentioned.
“If 2022 was one of the hardest investing years in living memory, 2023 is shaping up to be equally challenging,” chief govt Stephen Bird mentioned.
“Geopolitical risk is back. Inflation is back. Credit risk is back.
“The changing dynamics and challenges within traditional asset management are well known – the relentless rise of passive and index investing, democratisation of technology and finance and the faster growth of alternatives are all ongoing themes.”
Nevertheless, outflows for its funding and advisory divisions had been partially offset by some £1.9 billion coming in for Interactive Investor, the funding platform which Abrdn acquired final yr.
Furthermore, it noticed its adjusted working revenue soar by a tenth to £127 million within the newest half yr, and revenues edge up barely.
The overwhelming majority of its income had been generated from its private and adviser arms, the group mentioned.
Profits for its funding division slumped by two thirds over the primary half.
Abrdn, which was often known as Standard Life Aberdeen till it eliminated the vowels in its identify in 2021, mentioned it was on observe to make £75 million in value financial savings for its funding division by the top of the yr because it strives to revive it to a extra “acceptable level of profitability”.
Despite the robust situations, the agency mentioned it was returning one other £150 million to shareholders by way of buybacks.