Abrdn relegated to FTSE 250 for second time in 12 months

After re-joining the FTSE 100 in December 2022


Abrdn has been demoted to the FTSE 250 in the index’s latest reshuffle.

FTSE Russell confirmed the asset manager would drop down from the FTSE 100 alongside Hiscox, Johnson Matthey and Persimmon.

Meanwhile Dechra Pharmaceuticals, Diploma, Hikma Pharmaceuticals and Marks and Spencer Group have been promoted.

It is the second time in 12 months that Abrdn, which manages £367.6bn assets, has fallen into the FTSE 250.

An Abrdn spokesperson told Portfolio Adviser: “We have been in this situation before and subsequently climbed back into the FTSE 100. We are confident in our strategy and focused on the things we can control.

“We are transforming our investments business, growing in the vibrant UK savings and wealth market through ii and adviser, and returning significant capital to shareholders.”

See also: Abrdn results: Share price tumbles 10% following 66% profit slump and 83% fall in flows

Abrdn rejoined the FTSE 100 in December 2022 after previously being relegated relegated to the FTSE 250 in October of the same year.

In the firm’s latest half-year results, profits for Abrdn’s investment arm fell by 66% while fund flows dropped by 83% year-on-year.

However, the firm’s acquisition of Interactive Investor in May last year significantly bolstered the performance of its adviser arm, which saw a 12% uptick in revenue.

Speaking ahead of the re-shuffle, Hargreaves Lansdown head of money and markets Susannah Streeter said: “Certainly, sky-high inflation and worries about economic growth have been challenging for the asset management sector, and Abrdn’s weaker performance in this environment looks set to propel it out of the big league.

“The company has shrugged off the potential demotion, remaining confident in its strategy. It has been trying to keep revenue moving in the right direction through acquisitions. It now owns Interactive Investor, which should provide a relatively stable source of assets for the group given its one of the UK’s biggest direct-to-consumer investment platforms.”

See also: BNY Mellon launches Multi-Asset Moderate fund

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