Abrdn saw its alternative investment portfolio, including private credit, grow by 7.3 per cent to £25.8bn of assets under management (AUM) over the first quarter.
However, the division recorded gross inflows of £200m and £300m-worth of redemptions over the period, resulting in net outflows of £100m.
Read more: Abrdn says 2024 should be the year for fixed income
Meanwhile, Abrdn’s entire business saw its first-quarter assets under management and administration (AUMA) grow by three per cent to £507.7bn over the period.
This included net inflows of £0.8bn, including £2.6bn of net inflows into liquidity. By comparison the same quarter in 2023 saw net outflows of £6.2bn, including £1.8bn of net outflows from liquidity.
Abrdn said its investments AUM increased to £374.3bn primarily reflecting positive market movements across
most asset classes.
Institutional and retail wealth net inflows in the first quarter were £700m including £2.6bn of inflows into liquidity. It said it was a challenging quarter for equities, with continued net outflows primarily reflecting industry asset allocation away
from Asia and emerging market.
Additionally, the global asset manager said interactive investor – the direct investment platform it acquired in 2022 – saw continued organic growth with customer numbers up three per cent year-on-year to 414,000.
Of this, its SIPP customers increased to 68,500 by 31 March 2024, up 25 per cent in the last year and up 10 per cent in the quarter.
Abrdn Advisor – its platform for financial advisers – saw its AUMA increase to £75.2bn as at 31 March 2024, driven by stronger markets.
However, Advisor recorded net outflows of £900m, with Abrdn noting that redemptions were elevated owing to the continued impact of the higher cost of living and further IFA consolidation.
Read more: Abrdn sees “robust” demand for private credit
“Our AUMA grew three per cent in the period to £507.7bn, supported by a positive contribution from markets across all three businesses,” said Abrdn chief executive Stephen Bird. “We had net inflows at a group level, including strong liquidity flows which contributed to positive overall flows within investments. At interactive investor, we saw continued organic growth in customers and flows. We were particularly pleased with the growth in SIPP customers.
“Yet clearly there is more work to be done in investments and adviser, where we have actions underway to improve performance. Our cost transformation programme is on track as we take action to sustainably restore our business to a more acceptable level of profitability. Our key focus, and our most important priority, is on delivering investment performance for all of our clients.”
Read more: Private debt sector poised for influx of pension money
