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magazineAsset manager Abrdn is having a tough time on the stock market
Having only been promoted to the FTSE 100 index last December, fund management firm Abrdn (ABDN) is looking to be a leading candidate for demotion from the large-cap benchmark at the next quarterly review. Confirmation of the changes to the index were due as this edition of Shares was being finalised.
Since 27 July, the shares have fallen by more than 30% despite the group posting 4% growth in first half revenue and a 10% increase in operating profit as well as doubling its share buyback to £300 million thanks to gains on the sale of its stake in India’s HFDC Life.
It seems investors have overlooked the good news in favour of the net outflow figure of £4.4 billion and the 15% drop in operating income in investments due to lower average assets under management.
In a trend which is becoming clear across the fund and wealth management sector, outflows were particularly notable in equities where ‘client asset allocation moved to debt products and cash in the rising interest rate environment’ according to the firm.
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