Aberdeen suffers £5.2bn in outflows as volatility hits markets

Daily Mail​

30-04-2025

Aberdeen suffered £5.2billion in net outflows in the first quarter, as the FTSE 100 fund manager was hit by weak markets and a big redemption in its investments division.
The asset manager, which resestablished its vowels in another rebrand last month, is currently undergoing a strategy revamp led by boss Jason Windsor after years of tough trading conditions.
It told investors it remained committed to its financial year 2026 targets, despite mixed flows in the first quarter of this year.
The large outflow at the start of the year is understood to primarily reflected a previously guided £4.2billion redemption by its biggest client Phoenix.
Abrdn continues to aim for an adjusted operating profit above £300million and net capital generation of around £300million.
The fund manager said its assets under management reduced to £500.1billion at the end of March, from the £511.4billion at the end of 2024.
The group's assets under management and administration slipped to £500.1billion, reflecting market weakness and a large previously flagged redemption, but strong growth at Interactive Investor helped offset some of the drag.
Aberdeen saw £1.6billion in net inflows and a 9 per cent year-on-year increase in customers to 450,000, including a 29 per cent surge in higher-value SIPP accounts.
Adviser outflows of £600million were the lowest in over a year as service levels improved.
The group's investments arm saw £6.4billion in outflows, largely due to a £4.2billion low-margin mandate redemption.
Aberdeen said it picked up a £6billion pound quantitative strategies mandate this month after the quarter ended.
Boss Jason Windsor said market volatility since Donald Trump's announcement of trade tariffs on 2 April had led to record trading volumes at interactive investor, but had not otherwise had a big impact on the business so far.
'We're a long-term player with a long-term focus, and despite the new uncertainty created in recent weeks, we've made good progress towards our objectives,' Windsor said.
Windsor has reportedly begun cutting costs at Aberdeen and shedding under-performing businesses, but downplayed the possibility of a wider restructure involving the hiving off of its asset management division to focus on wealth.
'There is no effort or energy going in in that regard at all. We're very happy with the configuration of the group,' Windsor said on Wednesday.
In March, the asset manager announced a rebrand to Aberdeen, having been previously called Abrdn.
The group said the rebrand was a 'pragmatic' decision required to 'remove distractions.'