Shares in asset management firm Abrdn (ABDN) fell 4% to 196p despite the announcement of full year results that were in line with consensus estimates.
Net redemptions continue to be an area of concern, and while they have slowed from £29 billion in 2020, outflows reached £6.2 billion in 2021.
The shares have fallen 25% over the last six months.
Adjusted earnings before interest and tax of £323 million was marginally ahead of a expectations of £318 million. Adjusted earnings per share of 13.7p, was ahead of analysts' forecasts of 13.4p and the dividend of 14.6p per share was in line with expectations.
Assets under management of £542 billion was slightly ahead of market expectations of £537 billion. Net redemptions (outflows) of £6.2 billion was higher than anticipated.
The group rebranded in April 2021, following the disposal of the Standard Life brand to Phoenix Group.
Chief executive Steven Bird, is attempting to revive the fortunes of the asset manager with his decision in December 2021 to acquire retail investment platform Interactive Investor for £1.49 billion.
Workplace pension schemes are becoming less generous, and active fund managers are facing fee pressure from providers of passive products such as Vanguard and BlackRock.
With this is mind, Bird is attempting to create an investment business that is attractive to a wider audience. Strategically this signals a re-orientation of focus away from its more established institutional wealth management business.
According to Numis analyst David McCann, ‘We think shareholders are paid well to wait given the 7% yield, which having been cut once already and given the balance sheet support should be fairly safe.’
