Abrdn PLC (LSE:ABDN) chief executive Stephen Bird explored the multi-hundred-billion-pound sale of the firm’s investment arm following its acquisition of interactive investor last year.
According to Financial News London, Bird proposed offloading Abrdn’s £368 billion investment wing but was blocked by the company’s board.
He had shown a clear “personal preference” for selling the business, people familiar with the matter said, with the board opting not to shrink the company and return capital to shareholders given their belief “Abrdn was fundamentally an asset management business”.
Bird had proposed the move in June 2022, suggesting at the time the strategic shift could protect Abrdn from potential worsening headwinds.
These included the likes of rising interest, which has prompted Abrdn to suffer continued outflows and pen a two-third drop in investment arm operating profits to £26 million at the interim stage.
“Strategy is about asking questions and testing alternatives,” a spokesperson said, "we do that in every strategy session".
“We have an agreed strategic direction that we are executing against at pace. Investment management is the core of our business, and we are making it more efficient and more relevant to our clients.”