8th Aug 2023 09:36
(Alliance News) - abrdn PLC shares tumbled on Tuesday, with investors less-than-impressed with the asset manager's half-year results, though RBC Brewin Dolphin believes there were signs that it may enjoy an upturn in its fortunes.
abrdn still has "some way to go" as far as its recovery goes, RBC Brewin Dolphin added.
abrdn shares tumbled 9.0% to 198.75 pence each in London on Tuesday morning. The stock is up 5.3% since the end of 2022.
abrdn said assets under management and administration fell around 0.9% to GBP495.7 billion on June 30, from GBP500.0 billion at the end of last year.
The company reported "challenging market conditions and net outflows from the 'risk-off' environment".
Excluding liquidity, it reported net outflows worsened to GBP4.4 billion in the first half, from GBP3.8 billion a year prior.
At interactive investor, which forms part of its Personal arm, net inflows totalled GBP1.9 billion. There were outflows of GBP100 million in the Personal Wealth segment, meaning net flows for the Personal division totalled GBP1.8 billion, improving markedly from GBP300 million a year prior.
"ii has continued to perform well against an uncertain market environment," abrdn said.
abrdn sealed the GBP1.49 billion buy of interactive investor in May 2022.
abrdn reported group net operating revenue of GBP721 million, up 3.6% from GBP696 million. Its pretax loss narrowed to GBP169 million from GBP326 million.
The company maintained its interim dividend at 7.3p per share.
In addition, it upped its share buyback programme by GBP150 million to GBP300 million. It eyes returns for 2023 to be at a similar level to 2022.
abrdn has had an eventful period of late, exiting India's HDFC Asset Management Co Ltd earlier this year. It also sold abrdn Capital, its discretionary fund management.
Last year, which also saw it seal the ii buy, was the first full calendar year since dropping vowels from its name, as well as the Standard Life branding. It was relegated from the FTSE 100 in a third-quarter index reshuffle, but reclaimed its spot among London large-caps before the end of 2022.
RBC Brewin Dolphin analyst John Moore commented: "Abrdn's results are a real mixed bag, but there are some tentative signs its move towards diversification is beginning to pay off. The closure of its Global Absolute Return Strategies fund and the selling down of its Indian investments mark the end of an era as it looks to build a modern financial services business. The latter is helping to fund further shareholder returns, with the share buyback programme being extended. The addition of Interactive Investor is proving to be a major part of Abrdn's transformation plan, while further acquisitions will bolster its offering.
"Abrdn still has some way to go with its plans and there will be challenges ahead as markets remain volatile."
By Eric Cunha, Alliance News news editor
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