Abrdn has reported improved flows and progress on its cost-saving efforts as the fund manager gears up to appoint a new chief executive.
The FTSE 250 asset management group, which has been grappling with outflows from its funds in recent years, reported net inflows of £800m for the first half of 2024, marking a turnaround from £5.2bn of net outflows seen in the same period last year.
Its assets under management and administration (AUMA) rose to £505.9bn from £494.9bn, which Abrdn pinned on “positive market movements and flows”.
Abrdn posted an adjusted operating profit of £128m for the six months, compared to £127m a year before.
However, its operating revenue fell seven per cent to £667m, which the firm said reflected the impact of outflows and expected lower margins in its investments business, also citing “the net impact of corporate actions”.
Abrdn announced an interim dividend of 7.3p per share, unchanged from the previous year.
The results come as Abrdn is on the hunt for a new leader after Stephen Bird stepped down as chief executive in May.
Jason Windsor, who is currently the chief financial officer, has been appointed interim chief while the formal search process is ongoing. The company added that it will consider external candidates for the top job.
Bird had been pushing through a turnaround plan for the firm and stripping out costs after a troubling few years following its £11bn merger with Standard Life in 2017. The firm sold off Standard Life in 2021 and renamed itself Abrdn in a much-mocked rebrand.
On Tuesday, Abrdn revealed that adjusted operating expenses had reduced by nine per cent to £539m, including 11 per cent lower staff costs and nine per cent lower non-staff costs.
Windsor, who has been tipped to replace Bird on a permanent basis, reiterated his confidence in the efforts to boost Abrdn’s profitability.
“We have three core businesses, with strong, scale positions in attractive markets and each has headroom to grow,” he said.
Windsor added: “While market conditions remain challenging, we are firmly on track to realise at least £150m of annualised cost savings by the end of 2025.”