- Fund manager saw growth in its investments and Interactive Investor business
Fund manager Abrdn returned to net inflows in the final three months of 2024, thanks to growth in its investments and Interactive Investor businesses.
Abrdn, which suffered net outflows of £3.1billion in the previous three months, raked in £1.2billion of client cash over the quarter, with net inflows into Interactive Investor of £1.4billion and the investments unit bringing in £500million.
This helped offset outflows within its insurance partners and adviser businesses, which hit £1.8billion and £900million respectively over the quarter.
Overall assets under management and administration ticked 1 per cent higher to £511.4billion as Abrdn also benefited from positive market movements. This compares to £494.9billion at the end of 2023.
Abrdn shares were up 7 per cent to 151.5p in early trading. However, they remain 15.8 per cent lower over the last 12 months and less than half their value five years ago.
Former finance chief Jason Windsor formally replaced Stephen Bird as boss in September, tasked with completing a revival of the group’s fortunes after profits have been hit by clients withdrawing funds.
An ongoing transformation programme is on track to deliver £150million in annual cost savings fromt the end of 2025, while Abrdn is also boosting investment in its tech, processes and staff.
Windsor said Abrdn ‘made significant progress’, with the group ‘exceeding our cost transformation targets and also laying the foundations for the new management team to achieve growth and efficiency as we enter 2025’.
He highlighted the performance of Interactive Investor, which ‘achieved the number 1 position in UK D2C net flows’.
Interactive Investors saw AUMA rocket 17 per cent to £77.5billion last year as customer numbers grew 8 per cent to 439,000.
Windsor said Interactive Investor ‘performed very strongly throughout 2024’ and he expects ‘continuation of its growth this year’.
John Moore, senior investment manager at RBC Brewin Dolphin, said: ‘Abrdn has largely been the subject of headlines for the wrong reasons during the last few years, however, these results offer signs of optimism for the future.
‘Interactive Investor is performing very well and is offsetting outflows in the advisor division, while the wider asset management business is showing signs of stability.
‘Results in line with forecasts are a step forward for the company and it will be interesting to see the targets and vision that Jason Windsor sets out with the full results in March.’
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