Abrn set to exit UK blue chip index
Abrdn set to exit UK blue chip index for first time since 2017 mega-merger
Abrn is set to exit the UK blue chip index for the first time since its 2017 mega-merger.
The investment firm, which manages £508billion in savings, has become too small to maintain its place in the FTSE 100 as its shares have fallen after a series of poor performances.
It is the seventh worst performing stock in the Large Listed Companies Index this year, having fallen more than 40%, and is worth just £3.2bn.
Abrdn, which manages £508billion in savings, has become too small to retain its place in the FTSE 100 as its shares have fallen after a series of poor performances
Since the creation of Abrdn through the 2017 merger of Standard Life and Aberdeen Asset Management, its actions dropped by 65%.
Susannah Streeter, of investment platform Hargreaves Lansdown, said: “Huge geopolitical uncertainty, soaring inflation and concerns over economic growth have been challenging for the asset management industry, and performance more Abrdn’s weakness in this environment should propel him out of the big league.’
It said its range of so-called environmental, social and governance (ESG) funds lag behind its peers as the sector becomes more popular.
And the lackluster performance of its fund managers over the past few years has caused investors to continually withdraw their money from Abrn products.
Streeter said that more recently the majority of Abrn’s funds have been ahead of their benchmark.
And she said the acquisition of investment platform Interactive Investor last year was a step in the right direction, as it “should provide a relatively stable source of assets”.
But that came too late to prevent Abrdn from suffering the fate of relegation.
Barring major moves in the stock market today, Abrn will almost certainly be downgraded to the FTSE 250.
Chief executive Stephen Bird has insisted his strategy of building in the UK wealth market and focusing on high-growth areas will pay off.