Abrdn: Scottish asset manager makes turnaround on flows
Abrdn has reported “significant progress” on managing to keep hold of investor cash, as the Scottish asset manager continues on its cost cutting plan.
The firm received £2.3bn into its institutional and retail wealth arm over the last quarter, pushing up 2024 to a positive year for new cash, it revealed in a trading update today.
In contrast, the last quarter of 2023 saw investors pull £5.8bn from the Scottish asset manager’s institutional and retail business, and it lost £17.9bn throughout the entire year.
DIY investing platform Interactive Investor received £1.4bn in new investor cash over the quarter, and £5.7bn throughout 2024, compared to £2.9bn in 2023.
The direct-to-consumer investing firm, which Abrdn purchased in 2022 for £1.5bn, has consistently been the strongest part of its business, with last quarter being no exception.
The strong performance came during a quarter where many City money managers struggled to keep hold of investor cash, as nerves around tax hikes in the Autumn Budget caused a small rush on funds.
“We made significant progress in 2024, exceeding our cost transformation targets and also laying the foundations for the new management team to achieve growth and efficiency as we enter 2025,” said Abrdn chief executive Jason Windsor.
However, the firm did still struggle to hold onto funds in some areas, with insurance partners pulling £4.3bn throughout the year, and its adviser arm losing £3.9bn.
“Outflows in adviser are being addressed, with an absolute focus on an improved service and value proposition for our clients,” said Windsor.
Abrdn’s investment arm did manage to bring in £500m throughout the quarter, but still lost £4bn during 2024.
Overall, the firm lost £1.1bn in investor cash throughout all of last year, compared to £17.6bn in 2023, leaving it with assets under management of £511.4bn.
Abrdn also reported that the firm’s cost-cutting programme was on track, with adjusted operating expenses in 2024 coming in on target, at below £1.075bn.
The firm has saved more than £100m in savings so far, and is on track to deliver at least £150m in savings by the end of this year.
Abrdn’s full-year results are due out on 4 March. It added that its adjusted operating profit for the year is expected to be in line with current market expectations.