Home Money Abrdn returns to profit after clients pour millions into its funds as search continues for new chief executive

Abrdn returns to profit after clients pour millions into its funds as search continues for new chief executive

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Return to profits: Abrdn reported a

Abrdn’s clients poured money back into the funds as the asset manager remained silent on its search for a chief executive.

The FTSE 250 company reported an “encouraging start” to the first half of the year with net inflows of £800m.

This is in stark contrast to the £5.2bn net outflows of the previous year.

Return to profit: Abrdn reported an “encouraging start” to the first half of the year with net inflows of £800m, in sharp contrast to net outflows of £5.2bn the previous year

Abrdn’s half-year results also showed it returned to profit, reported higher assets and reduced costs.

But the investment firm has not announced a permanent replacement for Stephen Bird, who left his job as chief executive at the end of June after four years.

His tenure included the controversial rebranding of the company from Standard Life Aberdeen to Abrdn in 2021.

Finance chief Jason Windsor, who joined the asset manager in October last year, took over as interim chief following Bird’s departure.

He said: “We have made an encouraging start to the first half of the year as we become more efficient and improve our propositions to lay the foundations for growth.”

Assets under management rose 2 percent to £505.9 billion during the period, while revenue fell 7 percent to £667 million.

Abrdn returned to a profit of £187m after selling its European-based private equity business, having reported a loss of £169m the previous year.

It also reported a 9 per cent drop in trading costs to £539m in the first half of 2024.

Clients withdrew fewer funds year-on-year in its investment business, while the Interactive Investor platform saw an increase in the number of clients.

But net outflows through its advisor platform tripled due to the cost of living crisis as “inflation outpaced cash savings options in the market.”

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