24th Oct 2024 12:28
(Alliance News) - abrdn PLC on Thursday said net outflows in the calendar year to date have fallen by nearly 70%, whilst third-quarter assets under management & administration demonstrate marginal growth.
The Edinburgh, Scotland-based investment company said assets under management & administration were GBP506.7 billion on September 30, up 0.2% from GBP505.9 billion on June 30 and growing 2.4% from GBP494.9 billion on December 31, 2023. The company said this growth reflected "positive markets and interactive investor net flows".
However, net outflows in the nine months that ended September 30 were GBP4.5 billion, dropping 67% from GBP13.5 billion the year before. Net outflows in the third quarter of calendar 2024 were GBP3.1 billion, down 54% from GBP6.7 billion last year.
Shares in abrdn were down 9.3% at 148.65 pence each in London on Thursday afternoon.
Customer numbers for its interactive investor platform grew 6% to 430,000 during the three months that ended September 30, whilst assets under management & administration for interactive investor rose 13% to GBP74.5 billion on September 30 from GBP66.0 billion on December 31.
Within its Adviser platform, third-quarter net outflows doubled to GBP1.0 billion from GBP500 million last year. abrdn said it was "taking action across the board to improve net flows, with improved service focus".
The company said it was on track to deliver around GBP60 million in cost savings for 2024, with at least GBP150 million annualised by the end of 2025. Its guidance for 2024 adjusted operating expenses remains under GBP1.08 billion.
Chief Executive Officer Jason Windsor said: "Today's update shows strong performance in parts of our group; however, it also underlines the importance of delivering on the priorities I set out at the half year. I'm pleased with the continued growth in interactive investor; meanwhile, there are challenges to overcome in Adviser, where we aim to return to being the platform of choice for clients. In Investments, we need to do more to capitalise on our strengths and improve performance and flows, particularly in equities.
"We have strong, scale positions in attractive markets, and each of our businesses has headroom to grow. Our priorities remain to transform performance, improve the client experience, and strengthen our talent and culture. We have plans in place to address our challenges and our transformation programme is on track. While there remains much to do, I am confident that we have great talent and we can make further progress towards profitable and sustainable long-term growth, benefitting our shareholders, clients and colleagues."
By Emily Parsons, Alliance News reporter
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