LONDON, Jan 21 (Reuters) - Abrdn announced on Tuesday that clients had increased their investments with the British asset manager in the final months of 2024, resulting in a 6% rise in its shares. The CEO stated that the company would continue to use its abbreviated name, despite public ridicule.
Although Abrdn experienced overall net outflows for the year, this underscores the challenges faced by mid-sized active money managers in light of competition from more affordable index-tracking products. The company’s shares have declined by approximately 40% over the last three years.
CEO Jason Windsor, who took over last year, has initiated cost-cutting measures and plans to provide a strategy update along with the full-year results on March 4.
In response to inquiries about potential market volatility following Donald Trump beginning his second term as U.S. president, Windsor expressed a long-term investment approach. He emphasized the need for Britain to attract more investment by simplifying property development planning and reviewing stock trading stamp duty.
Abrdn noted a net inflow of 1.2 billion pounds ($1.5 billion) from clients in the fourth quarter, a marked improvement from the 5.7 billion outflow in the same period the previous year. JPMorgan analysts praised the better-than-expected net inflows, driven by an increase in flows to cash funds and the retail platform interactive investor.
For the year, outflows decreased to 1.1 billion pounds, down from 17.6 billion pounds in 2023. Assets under management grew to 511.4 billion pounds from 506.7 billion at the end of September.
Regarding the company's name, Windsor downplayed the possibility of changing it, affirming the decision to remain with Abrdn, a name introduced in 2021 by his predecessor, Stephen Bird. Windsor stated, "I've got nothing to say on the name. The name is the name, and we are continuing with it," to reporters.
($1 = 0.8153 pounds)