The outflows were significantly higher than the £900 million recorded in the same period a year earlier and came against analyst expectations of a modest inflow, highlighting continued challenges for the company as it works to rebuild investor confidence.
Shares of Aberdeen fell 7% in early trading following the results. The stock had gained 21% so far this year ahead of the earnings announcement, helped by a turnaround strategy led by CEO Jason Windsor, including a cost-reduction programme that supported its return to the FTSE 100 index.
Windsor said interactive investor attracted record inflows of £6.8 billion, but larger clients across other parts of the business continued to withdraw assets and reduce the number of investment partners they used. The company has appointed Rich Denning from M&G to lead its adviser division as part of efforts to improve performance.
Aberdeen’s assets under management stood at £579.4 billion, while adjusted operating profit rose 21% to £151 million, narrowly exceeding market expectations, the report stated.
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The company said it was assessing various scenarios with clients to understand the potential impact of the escalating Middle East conflict on financial markets and investment portfolios. Aberdeen remains focused on managing risks linked to inflation pressures, particularly those arising from uncertainty around oil supply.
Aberdeen presented its results from interactive investor’s headquarters in Manchester, where it has added 100 employees this year, taking its workforce in the northern English city to 800.
Meanwhile, shares of rival wealth managers including St James’s Place and Rathbones declined around 1% in early trading after their results offered mixed signals about the sector’s performance.