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Aberdeen tumbles into the red as market turmoil rocks investments

Published 09/08/2022, 08:23
Updated 09/08/2022, 09:11
© Reuters.  Aberdeen tumbles into the red as market turmoil rocks investments

Abrdn PLC (LSE:ABDN) fell into the red in the first half as the sell-off in global markets hammered investments.

And the investment manager cautioned current market uncertainty means its ambitions for revenue growth and improved cost/income ratio are “likely to take longer than originally expected”.

The group posted a pre-tax loss of £320mln, down from a profit of £113mln in the first six months of 2021.

The value of its major listed investments stood at £1.7bn as of 30 June compared with £2.3bn previously.

“In the Investments vector our results have been impacted by industry-wide negative returns which has resulted in 11% lower fee based revenue and 40% lower adjusted operating profit,” said chief executive Stephen Bird.

“The sharp rotation from growth to value has impacted our investment performance in equities and multi-asset, while performance in real assets, alternatives and fixed income is highly competitive over the medium and longer term.”

Its cost-to-income ratio was 83% and it said it now aims to deliver a “similar percentage of adjusted operating cost reduction” in the full year as delivered in the first half.

The firm nevertheless declared an interim dividend of 7.3p in line with its policy.

Shares fell 3.26% in early deals.

Read more on Proactive Investors UK

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