Abrdn CEO Jason Windsor heralds ‘significant progress’ after 2024 turns positive

Abrdn boss Jason Windsor said “significant progress” had been made in the past year as the Scottish funds giant returned to net inflows in the final three months of 2024.

Analysts pointed to “signs of optimism” as the Edinburgh-headquartered investment group revealed £500 million net inflow in its core investments division in the fourth quarter, marking a big turnaround from the previous three months and pushing its shares higher in morning trade.

Windsor, who took over last year from previous chief executive Stephen Bird, said: “We made significant progress in 2024, exceeding our cost transformation targets and also laying the foundations for the new management team to achieve growth and efficiency as we enter 2025. Investments returned to inflow in the quarter, and while there remain challenges to overcome, it was pleasing to see our institutional and retail wealth segment report £2.3 billion of positive flow in Q4.

The Scottish investment heavyweight controversially rebranded to Abrdn in 2021. Picture: Scott Reid

“Interactive Investor performed very strongly throughout 2024, and we expect continuation of its growth this year. Outflows in adviser are being addressed, with an absolute focus on an improved service and value proposition for our clients.”

Bird’s four-year tenure as CEO included a controversial rebranding of the group from Standard Life Aberdeen. He also undertook a sweeping overhaul of the funds business, including axing some 500 jobs. The firm undertook some key acquisitions including the purchase of Interactive Investor.

John Moore, senior investment manager at wealth firm RBC Brewin Dolphin, said: “Abrdn has largely been the subject of headlines for the wrong reasons during the last few years, however, these results offer signs of optimism for the future.

“Interactive Investor is performing very well and is offsetting outflows in the advisor division, while the wider asset management business is showing signs of stability. Results in line with forecasts are a step forward for the company and it will be interesting to see the targets and vision that Jason Windsor sets out with the full results in March.”

Analysts at brokerage Panmure Liberum noted: “Rome was not built in a day, but someone had to break ground sometime. Similarly, Abrdn will not be rebuilt quickly but it has to start putting in some quarters where things are a bit better than not and in Q4/2024 it has done exactly that. There is plenty of value in the business if management delivers, and the signs of that are a bit better.”

An ongoing transformation programme at Abrdn is on track to deliver £150m in annual cost savings from the end of 2025, while the group is also boosting investment in its technology, processes and staff. It said the sale of its Focus Solutions business in December was consistent with its strategy to simplify the group.

The latest update showed that net inflows in 2024 almost doubled to £5.7bn at the Interactive Investor business.

Many mid-sized fund managers have been under pressure in recent years amid growing competition from cheaper index-tracking products and inflationary pressure on costs, with Abrdn hit particularly hard.

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