U.K.-based asset manager Abrdn recorded £800 million ($1 billion) of inflows in the first half of 2024, compared to £5.2 billion of outflows during the same period last year, according to the firm’s half year results.
Abrdn cut about 500 roles as part of an at least £150 million cost-saving program in January, with the "removal of management layers," in an effort to make its investments business more profitable.
The move appears to have had some effect, and adjusted operating profit at Abrdn was 1% higher at £128 million in the latest results. Adjusted operating expenses reduced by 9% to £539 million, according to Abrdn, reflecting “good progress in achieving cost savings,” including 11% lower staff costs.
According to the results, Abrdn was also “on track” to realize at least £150 million of annualized cost savings by the end of 2025.
However, net operating revenue was 7% lower at £667 million, reflecting the impact of outflows and the expected lower margins in investments, the company said.
An outlook report from the results said: “Each of Abrdn’s core businesses have made progress against their strategic objectives in the first half (of the year), and our focus on returning to profitable and sustainable growth is showing some early signs of success.
“However, while we have seen an improvement in market conditions in the first half, the outlook for global financial markets remains uncertain.”
Former Abrdn chief executive Stephen Bird stepped down in May, having been with the firm since 2020.
Chief financial officer Jason Windsor is currently interim CEO at Abrdn, and news reports have named him as the most likely contender to take on the role on a permanent basis.
Windsor said in the results: “These are solid foundations, positioning us for a step-change in performance and allowing us to invest further in growth. I am excited about the potential in Abrdn, and confident that by delivering against our priorities, we can deliver better outcomes for our clients, more attractive performance for our shareholders and nurture a culture that sustains long-term success.”
The firm was part of an £11 billion merger with Standard Life in 2017. Standard Life was sold off in 2021 and Aberdeen Asset Management was renamed Abrdn.
