Abrdn Reports Inflows Amid CEO Search

Abrdn Plc reported positive net inflows in the first half of 2024 as the asset management firm continues its search for a new permanent chief executive officer. The firm announced on Tuesday that clients contributed a net of around $1 billion to its funds during the first six months of the year, bringing assets under management and administration (AUMA) to approximately $643.5 billion.

Despite this progress, the company has yet to name a successor for Stephen Bird, who resigned as CEO in May following a challenging tenure. Jason Windsor, the firm’s finance chief currently serving as interim CEO, is considered a strong candidate for the permanent position, but no official announcement has been made.

The Edinburgh-based firm has struggled with years of outflows and multiple rounds of job cuts. While the asset management industry as a whole has been dealing with client redemptions and compressed margins, leading to mergers and cost-cutting measures, Abrdn’s issues have been particularly severe.

Abrdn’s statement highlighted that market performance and other movements added around $21,9 billion to AUMA, driven by stronger markets, especially in alternative investment solutions and equities. The company has started including its index-tracking alternatives and quantitative assets in the AUMA calculation.

Performance in actively managed funds has been less robust. Abrdn attributed this to challenging market conditions, underperformance in equities, and its asset exposure to Asia and emerging markets. Additionally, the firm’s developed markets strategies faced difficulties due to the “exceptionally concentrated” performance of the ‘Magnificent 7’ stocks in the US.

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