Profits dive 66% at abrdn investment arm as funds struggle to outperform

ii adds £67m profit

Profits across abrdn’s investment arm have fallen 66% over the first half of 2023 while heavy redemptions continue to weigh on assets under management.

Year-on-year H1 adjusted operating profit has continued to shrink, down to £26m from H1 2022's £76m and a hefty 79% fall from H1 2021's £126m. Net outflows have continued at the asset management business, with £6.5bn leaving the business over the first half of the year, however, these are tempered compared to the previous year's £37.3bn haemorrhage of assets. AUM has ticked down 2.3% across the investment arm, with the £8.5bn net reduction taking the total to £367.6bn. 'The writing has been on the wall for some time' for abrdn's GARS The investment arm also remains on track to d...