Abrdn is cutting about a fifth of its multiasset staff following the departure of its multiasset CIO and a decision to restructure, a spokeswoman confirmed.
After Aymeric Forest, CIO of multiasset and investment solutions, left the firm in February, abrdn is changing its investment process in efforts to grow its multiasset business.
Russell Barlow, global head of alternative investment strategies, was tasked with working with the multiasset investing team to "redesign the end-to-end investment process, with a core focus on simplification and the establishment of a solid foundation from which we can scale and grow the MAIS offering," the spokeswoman said.
As part of these changes, about 30 employees out of the 144 within the mulitasset unit will be laid off, including fund management staff.
"It is a mix of front, middle, back-office roles," the spokeswoman said, adding that the company is offering voluntary redundancy.
As the firm's new CIO Peter Branner joins on May 1, it does not plan to bring back the multiasset CIO role at this time.
As abrdn continues to face challenges when it comes to boosting returns, improving the growth of organic assets under management and reducing its overall costs, Moody's Investors Service changed its rating to negative from stable in January.
Abrdn's assets under management and administration fell 7.7% in 2022 to £500 billion. Institutional assets fell 6.9% to £161.9 billion.
"Our negative outlook on abrdn reflects our view that the company's ability to make good on its turnaround plan — meaning boosting revenue, AUM and profitability growth — is being made tougher by the deterioration in today's operating environment," Alexandra Aspioti, senior analyst, at Moody's Investors Service, said in an emailed comment.
Jonathan Miller, director of manager research ratings at Morningstar said in a separate emailed comment: "With the final tranche of Lloyds solutions now transitioned out of the firm, huge reduction of assets in the Global Absolute Return Strategies Fund (where Aymeric Forest who headed the team recently left), plus the discretionary fund arm being sold to LGT, quite a lot has changed."
GARS fund had £982 million in assets under management as of March 31, 2023, compared to £2 billion as of March 31, 2022, according to data provided by Morningstar.
Abrdn agreed to sell its discretionary fund management business abrdn Capital to LGT in late February.
"Through a mix of Aberdeen and Standard Life Investments, there will have been many different strands to multiasset for different client types. It's clear today that in terms of asset managers' offerings, you can't be all things to all people. Assets have fallen and some business has been lost, so it's perhaps no surprise that there has been a reorganisation," Mr. Miller added.
In response the firm said in a statement: "The starting point for the redesign was an open acknowledgement of the need for change, any restructuring decisions have and will be as a direct result of collaboration and engagement. The end state will ensure we have a strong, client-led proposition and the building blocks to ensure we are future fit."
