Abrdn CEO Stephen Bird (pictured) said there is “more work to be done” to improve the performance of its investment and adviser division, despite recording positive inflows in Q1.
In a Q1 update, the firm as a whole revealed an £800m inflow over the period, reflecting an improvement on the £6.2bn net outflow it suffered at the same stage of last year.
The bulk of the inflows came from investment platform Interactive Investor, which enjoyed £1.2bn net flows in Q1 alongside a £3.6bn growth in assets under management and advice growth (AUMA) compared to Q1 2023.
Overall, the firm’s AUMA grew 3% to hit £507.7bn, which the firm said reflects stronger market conditions and improved net flows.
The firm’s investments division attracted £200m net new cash and grew its AUMA to £374.3bn, an £8.6bn increase on the first three months of 2023.
Institutional and retail wealth net inflows in were £700m, which included £2.6bn inflows into liquidity.
See also: Liontrust expands Economic Advantage Team
While fixed income strategies continued to attract inflows, investors pulled money out of equities, which Abrdn said primarily reflected wider industry asset allocation away from Asia and emerging markets.
Bird said: “At Interactive Investor, we saw continued organic growth in customers and flows. We were particularly pleased with the growth in SIPP customers. Yet clearly there is more work to be done in Investments and Adviser, where we have actions underway to improve performance.
“Our cost transformation programme is on track as we take action to sustainably restore our business to a more acceptable level of profitability. Our key focus, and our most important priority, is on delivering investment performance for all of our clients.”
