Total AUMA was £494.9 billion as of Dec. 31, down 0.2% over the six-month period.
Abrdn is targeting an at least £150 million cost reduction by the end of 2025.
"We have sized this transformation program to get the group into the right shape, to allow the three businesses to not only survive but thrive," Stephen Bird, CEO, said in a conference call to discuss the update. Executives are working to "restore the profitability to our investments business" to a more "acceptable" level, he added.
In the update published on Jan. 24, Bird said: "Although our business model benefits from the diversification that comes from operating three businesses, we will not rest until all of them are contributing strongly to group profitability, as adviser and interactive investor have done in 2023."
Approximately 80% of the savings will benefit the investments business, the update said. The target excludes cost reductions previously announced, including the sale of abrdn's £7.5 billion European-headquartered private equity business to Patria Investments.
Abrdn said its investments business had "continued to face structural headwinds" in the second half of 2023, "as we anticipated," attributing the difficulties to high inflation and geopolitical uncertainty that pushed clients toward cash and derisking of portfolios.
Across institutional and retail wealth clients, net outflows of £8.3 billion were driven by equities and fixed-income strategies, "reflecting the challenging market environment and our exposure to Asia and emerging market solutions," the update said.