This compares to £1.4bn in inflows reported for the first half of 2022.

Abrdn said the outflows reflect the slow down seen across the market, and consumers’ responses to the increased cost of living.

Despite the drop in flows, the advice arm saw a 12% rise in net operating revenue to £103m (H1 2022: £92m). Abrdn said this was driven by a higher-than-average cash margin reflecting higher interest rates.

Adjusting operating profit was up 29% to £49m (H1 2022L £38m) due to higher revenues and flat costs.

The wider Abrdn business continued to suffer as market conditions impacted investments and costs for the investment business remained high.

The firm reported an IFRS loss before tax of £169m (H1 2022: loss of £326m), which Abrdn said was largely driven by the fall in market value of its listed stakes.

Assets under management fell 1% to £496bn (31 December 2022: £500bn).

Net operating revenue for the overall business rose 4% to £721m, with growth in the adviser and direct businesses offsetting lower revenues in investments.

The investments business reported a 15% fall in net operating revenue to £466m, due to lower average assets under management and net outflows, particularly in equities.

Adjusted operating profit for Abrdn as a whole rose 10% to £127m as the cost/income ratio improved marginally to 82%.

However, adjusted operating profit for the investments business fell 66% to £26m, reflecting challenging conditions and a decline in revenue.

However, Abrdn said its investments business was on track to become more profitable again and that the firm is on track to deliver its £75m net cost reduction target, with £30m of cost savings made in the first half of this year.

Stephen Bird, CEO of Abrdn, said: We continued to move at pace to execute our strategy over the first six months of 2023 in a challenging macro environment. “Thanks to Abrdn’s revenue diversification and the resilience we have built into our business with the acquisition of interactive investor last year, we grew revenue by 4% and adjusted operating profit by 10% over the period. We are on track to deliver our £75m cost savings target in investments as we continue our work to restore that business to a more acceptable level of profitability.”

He added that the firm has a strong cash balance sheet and is looking to make further acquisitions.