The advice arm of asset manager Aberdeen reported £0.6bn in outflows for the quarter ended 31 March 2025.

However, the net flows were an improvement year-on-year, as Aberdeen’s advice arm reported net outflows of £0.9bn for the first quarter of 2024. The outflows for Q1 were the lowest seen since the third quarter of 2023.

The asset manager said the 30% improvement in net outflows in its adviser arm was due to restored service levels, enhanced platform functionality, and repricing.

The advice arm ended the quarter with assets under management and advice of £73.7bn, a £1.5bn drop over the three month period (31 December 2024: £75.2bn).

The adviser arm expects to achieve at least £1bn of net inflows for 2026, according to the trading update.

The outflows for Aberdeen Adviser were offset by net inflows of £1.6bn for the asset manager’s Interactive Investor wealth management arm (Q4 2024: £1.2bn). The arm saw a 9% increase in total customers to over 450,000, with 29% for its SIPPs arm which now has 88,000 customers.

The asset manager’s investment arm also reported net outflows for the first quarter. Net outflows of £6.4bn were due to a £4.2bn redemption from a low-margin mandate for Phoenix, according to the trading update. In the comparable period last year, Aberdeen’s investment arm reported £0.2bn of net inflows.

The investments arm ended the first quarter with assets under management of £359.6bn (31 December 2024: £369.7bn).

Jason Windsor, CEO of Aberdeen, acknowledged that improvement was needed for the adviser arm.

He said: "In adviser, net outflows improved in Q1, and while there remains work to be done, we are encouraged by the business's progress, most notably in meeting or exceeding client service targets.”

The asset manager also re-affirmed its ambition to be the UK’s leading wealth and investments group, with targets of adjusted operating profit above £300m for 2026.

The trading updating said that Aberdeen is on course to meet its target of a minimum £150m of annualised cost savings by the end of this year.