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Investing.com -- Shares of British investment firm Aberdeen Group PLC (LON:ABDN) rose modestly by 1.1% as the market responded to the company’s latest financial update.
Despite Assets Under Management and Administration (AUM) for the first quarter of 2025 falling slightly short of consensus estimates, the firm reported net flows excluding liquidity that were better than expected.
Aberdeen’s first-quarter AUM came in at £500.1 billion, approximately 1% below the Visible Alpha consensus.
This minor shortfall was attributed to all segments contributing to the slight miss. However, the company’s group net flows, excluding liquidity, were more favorable at -£5.7 billion compared to the anticipated -£7.1 billion.
The investment net flows exceeded expectations, supported by the PHNX insurance outflow being £0.8 billion less than projected. Although equity net flows did not meet expectations, negatively impacting the investment margin, Aberdeen highlighted a significant mandate win in April.
This £6 billion win, despite being low margin, has brought the firm’s net flows in Investments & Retirement Wealth (I&RW) to positive year-to-date.
In the advisory segment, Aberdeen reported a 33% sequential improvement in outflows, a development seen as a step in the right direction towards achieving market-leading service levels and returning to net inflows.
The management team reaffirmed their commitment to achieving at least £150 million in annualized savings by the end of FY25 as part of their transformational program.
They also reiterated the FY26 targets, including an AOP (Adjusted Operating Profit) of more than £300 million, net capital generation of around £300 million, and a goal of £1 billion in net inflows for the Adviser business.
Despite the initial AUM miss, Aberdeen’s stock has seen a positive response from investors, likely due to the better-than-expected net flows and the company’s commitment to its strategic targets and cost-saving measures.