Aberdeen adviser unit hit by outflows over UK Budget uncertainty
Its clients pulled out £2.5 billion in the three months till December, against £500 million in the previous period
[LONDON] Aberdeen Group reported another quarter of net outflows, as the uncertainty over tax changes in the UK Budget in November added to redemptions at its adviser unit.
Its clients pulled a net £2.5 billion (S$4.3 billion) from the group’s funds in the three months till December, against £500 million in the previous period, based on a statement released on Wednesday (Jan 21).
The adviser unit, which caters to financial planners, had net outflows of £800 million in the quarter, as some clients withdrew their funds amid tax concerns.
Aberdeen added that the pace of full-year outflows had slowed, thanks to its improved service and pricing in the business.
Its retail investing platform’s customer number climbed by 14 per cent year on year to 500,000, with higher daily trading volumes and net inflows of £1.4 billion.
The asset management unit posted net outflows of £3 billion, including the previously announced £4.5 billion withdrawal from a lower-margin quants strategy, partly offset by Aberdeen’s takeover of the pension plan of bus transport company Stagecoach Group.
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Aberdeen’s group assets under management and administration rose 2.5 per cent from the previous quarter to £556 billion, helped by the positive market movements. The firm said that it expects its adjusted operating profit for the year to be in line with the current market expectations.
Chief executive officer Jason Windsor is increasingly pivoting Aberdeen towards wealth management, with Interactive Investor generating consistent inflows.
The former Aviva executive, who took over the helm in 2024, is also looking to revamp Aberdeen’s adviser unit as well as its asset management business, which has suffered years of client withdrawals.
The company’s shares have rallied more than 45 per cent over the past year, amid optimism over the strategic shift. BLOOMBERG
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