UK fund manager abrdn witnessed a drop in assets under management with net outflows worth £4.4 billion for the first six months of 2023.
Adjusted operating profit in investments was down 66% to £26 million, compared to £76 million in H1 2022, reflecting a “challenging macro environment”, said abrdn.
Pre-tax loss was £169 million for the first half of the year compared with a pre-tax loss of £326 million the previous year.
The results showed that assets under management had dipped to £495.7 billion as of June 30, compared with £500 billion at the end of December.
abrdn registered a 4% higher net operating revenue at £721 million, with growth in adviser and personal categories offsetting lower investment revenue.
Overall, the firm’s adjusted operating profit for the first half rose 10% to £127 million. The asset manager also raised its share buyback plan to £300 million from £150 million announced in June.
abrdn displayed a strong performance in alternatives, with 94% and 100% of assets under management outperforming over one and three years, respectively. The adviser arm also offered “strong earnings” despite market challenges, with profits increasing 29% year-on-year to £49 million.
The report stated that the acquisition of investment service interactive investor (ii) has “exceeded initial expectations” and “transformed” abrdn’s personal business. Within the firm’s personal arm, ii delivered an adjusted operating profit of £67 million for H1 2023 and net operating revenue of £115 million, compared to the personal arm’s £61 million profit and £152 million revenue.
Stephen Bird, CEO, said: “Thanks to abrdn’s revenue diversification and the resilience we have built into our business with the acquisition of interactive investor last year, we grew revenue by 4% and adjusted operating profit by 10% over the period. We are on track to deliver our £75 million cost savings target in investments as we continue our work to restore that business to a more acceptable level of profitability.”
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